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APEX ENERGY: Unsecured Creditors to Get 15% Under Plan

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Apex Energy, LLC, has proposed a reorganization plan that provides that payments and distributions under the Plan will be funded from the net profits received from the production and sale of crude oil.

General unsecured creditors classified in Classes 4 and 5, and will receive a distribution of 15% of their allowed claims, to be distributed as follows: Class 4, general unsecured claims of $2,500 or more will receive distributions totaling 15% of the allowed claims with interest at the Federal Judgment Rate generally paid each month for which the posted West Texas Intermediate price is more than $50.00 per barrel, defined in the Plan as the “Minimum Price Achievement”; the Class 5 general unsecured creditors hold claims less than $2,500 and are paid 15% of the allowed claims on the Effective Date of the Plan.

Class 2 Secured claim of Margaret Sannes is impaired with a total claim of $780,145. Payments will begin on the Confirmation Date and will end when $300,000, with interest at the Federal Judgment Rate on the Confirmation Date, is paid. The interest rate 4.5%. The Class 2 creditor shall be paid 10% of the Net Profits Income received by the Debtor as provided by the pre-bankruptcy Assignment of Net Profits Interest.

Class 3 Secured claims of Name Interface Treating Solutions, LLC and Nortana Grain Co are impaired with a total claim of $65,145 and bearing an interest rate of 10%. The secured claims of Interface Treating Solutions, LLC and Nortana Grain Co. will be paid through 24 pro rata monthly distributions of 10% of the Net Profits Income commencing the first day of the second month following the date the Minimum Price Achievement occurs and continuing each month thereafter as long as the Minimum Price Achievement continues to be met.

Class 4 General unsecured non-priority claims of $2,500 or more are impaired. The Class 4 Non-Priority Class Creditors will each receive a distribution of 8% of its allowed claim through monthly payments, without interest, commencing on the first day of the second month following the date the Minimum Price Achievement occurs, and continuing each month thereafter for which the Minimum Price Achievement is realized through payments of 10% of the Net Profits Income received by the Debtor during such month.

Class 5 [1122(b) Convenience Class] -– non-priority claims of less than $2500 — are impaired. The Class 5 Non-Priority Convenience Class Creditors will each receive a distribution of 15% of its allowed claim, through a single payment on the Effective Date.

A full-text copy of the Disclosure Statement dated April 13, 2020, is available at https://tinyurl.com/yckfwnj4 from PacerMonitor.com at no charge.

About Apex Energy

The Apex Energy, LLC is a Montana limited liability company, organized in 2017 when it purchased oil producing properties from Ronald and Margaret Sannes. Since February 23, 2017, it has been in the business of producing and selling crude oil from properties in Richland and Dawson Counties, Montana.

In July 2019, Regency Energy Services, the work-over company engaged by the Debtor, and which claimed a debt of approximately $350,000, filed an involuntary bankruptcy against the Debtor. In September, 2019, the Debtor consented to the relief sought by Regency and converted the case to one under chapter 11.

The Chapter 11 case is In re Apex Energy, LLC (Bankr. D. Mont. Case
No. 19-60676).

The Debtor is represented by counsel, JA Patten.

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