Hunts’ Placid Oil Submits Plan to Repay Debt in Full
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DALLAS — The Hunt brothers’ debt-swamped Placid Oil Co., which sought federal bankruptcy court protection nearly a year ago in a confrontation with some of the nation’s biggest lender banks, proposed Monday to fully repay its $850-million debt over the next decade.
The bankruptcy reorganization plan submitted by Placid after months of legal maneuvering has been eagerly awaited by the company’s creditors. It wasn’t immediately clear what their response would be.
The proposal was submitted in U.S. Bankruptcy Court where the company filed for Chapter 11 protection from creditors last Aug. 29.
Placid is owned by the personal trusts of Nelson Bunker Hunt, William Herbert Hunt and Lamar Hunt, who made their fortunes partly in the Texas oil-and-gas business but suffered large losses after oil prices collapsed last year.
The claim of Placid’s secured creditors, principally 18 large banks, would be paid over 10 years in 40 quarterly installments under the plan, which must be approved by both secured and unsecured creditors.
The plan calls for unsecured creditors to be paid over five years in equal yearly installments without interest.
Placid, which owes the Internal Revenue Service $543 million, would satisfy tax claims over six years.
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