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Ultra Petroleum Creditors Say Reorg Plan Undervalues Business

Aug. 3, 2020, 9:51 PM

Creditors of Ultra Petroleum Corp. are opposing its plan to reorganize and slash $2 billion worth of debt, concerned that it undervalues the business by about $500 million.

The oil and natural gas driller’s Chapter 11 plan is predicated on a flawed enterprise value that reduces the value of returns for unsecured creditors in order to keep them “out of the money,” an unsecured creditors committee said in an Aug. 1 objection filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The creditors contend that the methodology used by Ultra Petroleum’s investment banker Centerview Partners LLC applies ...