Gulfport’s Reorg Plan Wins Creditors’ Support by Hiking Payout

April 19, 2021, 7:48 PM

Gulfport Energy Corp. won a group of unsecured creditors’ support for its Chapter 11 plan by agreeing to increase their recovery.

The settlement resolves a dispute between Gulfport and the official committee of unsecured creditors over how the plan treats the parent company’s creditors versus those of its subsidiaries.

The agreement “significantly” improves creditors’ treatment, increasing the value flowing to them “nearly threefold,” the committee said in a letter to general unsecured claim holders. The committee agreed to send the revised letter of support, with instructions on how to change a vote, in exchange for Gulfport agreeing to amend its...

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