HOUSTON, April 20, 2016 /PRNewswire/ -- After a contested "cram down" plan confirmation hearing, HII Technologies, Inc. ("HII") (OTCBB: HIITQ) and its subsidiaries confirmed a Chapter 11 Plan of Reorganization on Friday, April 15, 2016. The U.S. Bankruptcy Court for the Southern District of Texas approved the restructuring that allows HII to emerge as a non-public oilfield service company owned by its former secured and unsecured creditors. The reorganized HII will maintain oilfield service operations and assets without any legacy debt. The creditors will also receive distributions from a Litigation Trust. The Litigation Trust is being funded by former secured creditors of HII. Net Litigation Trust recoveries will pay 45 percent to unsecured creditors and 55 percent to secured lenders under the Debtor-in-possession lending facility.
"We are pleased that the Court agreed with our evidence and confirmed this plan for the benefit of all creditors," said Loretta Cross, Chief Executive Officer of the Reorganized HII and a restructuring advisor from Stout, Risius, Ross, Inc. "This complex restructuring was highly litigated and required us to overcome objections to postpetition financing, objections to a sale proceeding, and finally a contested plan hearing. We are all glad to move on with HII's business."
Andrew Buck, assistant director of Garden City Group, the official Balloting and Noticing Agent, determined that over 99 percent of the general unsecured debt voters had accepted the plan.
The parties were represented by Hugh Ray III, Chris Johnson and Ben Hugon from McKool Smith, P.C. (for HII and affiliates) and Greg Carney of Indeglia and Carney, LLP (HII securities counsel); Mark Joachim and George Utlik from Arent Fox LLP and E. Lee Morris of Munsch, Hardt, Kopf and Harr, P.C. (for the post-bankruptcy lenders); Elizabeth M. Guffy and Steve Bryant of Locke Lord, LLP (for the Official Unsecured Creditor's Committee); John Sparacino of Vorys, Sater, Seymour and Pease LLP (for HII's CEO); and Joshua Wolfshohl of Porter Hedges LLP (for HII's Outside Directors).
Chief Restructuring Officer
SOURCE HII Technologies, Inc.