Ultra Petroleum Corp. Announces Favorable Opinion for Company on Make-Whole Litigation Appeal
17 Janeiro 2019 - 09:45PM
Ultra Petroleum Corp. ("Ultra Petroleum" or the “Company”) (NASDAQ:
UPL) announces that earlier today, the U.S. Court of Appeals for
the Fifth Circuit delivered a favorable opinion in the appeal
proceedings by Ultra Petroleum about the make-whole claims that had
been asserted against the Company. This is a victory for Ultra
Petroleum, reversing a bankruptcy court decision that had required
the Company to pay approximately $400 million to various creditors
following the Company’s emergence from Chapter 11 proceedings.
“We are very pleased with the Fifth Circuit’s
decisive opinion reversing and remanding the prior judgment against
Ultra Petroleum. We remain committed to this appeals process and
ultimately believe the outcome of any final decision will be
consistent with today’s Fifth Circuit ruling, which would result in
the recoupment back to the Company of up to approximately $260
million of non-settled claim amounts that were previously paid out
by the Company to various creditors,” said Brad Johnson, Interim
CEO.
After the Company and its subsidiaries petitioned
for reorganization under Chapter 11 in 2016, certain creditors
asserted that they were entitled not just to principal and
pre-petition interest on certain debt instruments, but also to a
contractual “make-whole” premium and post-petition interest at a
contractually defined rate. On appeal, the Fifth Circuit reversed
the bankruptcy court’s decision and remanded for further
proceedings. The Fifth Circuit rejected the bankruptcy court’s
determination that the creditors had been impaired merely by
operation of the Bankruptcy Code, holding instead that creditors
are impaired only if a reorganization plan itself alters legal,
equitable, or contractual rights. The Fifth Circuit expressed
“doubt” that the creditors are entitled to payment of the
make-whole and indicated that the creditors’ claim for the
make-whole premium would be disallowed under the Bankruptcy Code.
Finally, the Fifth Circuit indicated that post-petition interest
should be determined according to the statutory federal judgment
rate, rather than at a higher contractual rate.
About Ultra Petroleum
Ultra Petroleum Corp. is an independent energy
company engaged in domestic natural gas and oil exploration,
development and production. The Company is listed on NASDAQ and
trades under the ticker symbol “UPL”.
Additional information on the Company is available
at www.ultrapetroleum.com. In addition, our filings with the
Securities and Exchange Commission (“SEC”) are available by written
request to Ultra Petroleum Corp. at 116 Inverness Drive East,
Suite 400, Englewood, CO 80112 (Attention: Investor Relations) or
on our website (www.ultrapetroleum.com) or from the SEC on their
website at www.sec.gov or by telephone request at
1-800-SEC-0330.
This news release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, including but not limited to statements
relating to the make-whole premium, post-petition interest claims,
and the ultimate outcome of the make-whole litigation on remand to
the bankruptcy court. Any statement, including any opinions,
forecasts, projections or other statements, other than statements
of historical fact, are or may be forward-looking statements.
Although the Company believes the expectations reflected in any
forward-looking statements herein are reasonable, we can give no
assurance that such expectations will prove to have been correct
and actual results may differ materially from those projected or
reflected in such statements. In addition, certain risks and
uncertainties inherent in our business as well as risks and
uncertainties related to our operational and financial results are
set forth in our filings with the SEC, particularly in the section
entitled “Risk Factors” included in our most recent Annual Report
on Form 10-K for the most recent fiscal year, our most recent
Quarterly Reports on Form 10-Q, and from time to time in other
filings made by the Company with the SEC. Some of these risks and
uncertainties include, but are not limited to, increased
competition, the timing and extent of changes in prices for oil and
gas, particularly in the areas where we own properties, conduct
operations, and market our production, as well as the timing and
extent of our success in discovering, developing, producing and
estimating oil and gas reserves, our ability to successfully
monetize the properties we are marketing, weather and government
regulation, and the availability of oil field services, personnel
and equipment.
For further information
contact:Investor Relations303-708-9740, ext. 9898Email:
IR@ultrapetroleum.com
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