From restructuring term sheet (8-K):
- The Company's 12.00% Senior Secured Second Lien Notes due December 2020 (the "LINN Second Lien Notes") will be allowed as a $2 billion unsecured claim consistent with the settlement agreement, dated April 4, 2016, entered into between the Company and certain holders of the LINN Second Lien Notes.
- Unsecured claims against the LINN Debtors, including under the LINN Second Lien Notes and the Company's unsecured notes, will convert to equity in the reorganized Company or reorganized LinnCo (the "New LINN Common Stock") in to-be-determined allocations.
- The Restructuring Support Agreement contemplates that Berry will separate from the LINN Debtors under the Plan. Claims under the Berry Credit Facility will receive participation in a new Berry exit facility, if any, and a to-be-determined allocation of equity in reorganized Berry (the "New Berry Common Stock").
- Unsecured claims against Berry, including under Berry's unsecured notes, will receive a to-be-determined allocation of New Berry Common Stock up to the full amount of Berry's unencumbered collateral and/or collateral value in excess of amounts outstanding under the Berry Credit Facility.
- Cash payments under the Plan may be funded by rights offerings or other new third party investments. The Restructuring Support Agreement contemplates that Berry may undertake a marketing process for the opportunity to sponsor its Plan.
- All existing equity interests of the Company, LinnCo and Berry will be extinguished without recovery.