Bankruptcy Claims FAQs
- How many shares are remaining in the reserve fund?
Upon Penn Virginia’s emergence from bankruptcy, 816,422 shares were placed in a reserve fund to satisfy general unsecured claims in its bankruptcy and to pay applicable premiums to non-accredited investor holders of notes. As of June 30, 2017, 235,043 shares (87,634 in the fourth quarter of 2016, 763 in the first quarter of 2017 and 146,646 in the second quarter of 2017) have been issued to claimants and former Penn Virginia noteholders, and 581,379 shares remain in reserve. Additional distributions will be made as bankruptcy claims are resolved although the timing of future distributions cannot be estimated at this time.
- How will I be notified of a distribution?
Former Penn Virginia noteholders and other general unsecured claimants with shares held in street name should receive notification of a distribution through their brokers. Shares will be distributed to your account electronically through your broker. If you are a holder of record or receiving an initial distribution of shares on account of an unsecured claim, a transaction statement will be mailed to your address of record by Penn Virginia’s Transfer Agent and shares will be credited to your account in book-entry form.
- How many claims remain outstanding?
Over 1,100 claims of approximately $100 million in the aggregate were filed in Penn Virginia’s bankruptcy. Since the company’s emergence, all but approximately 50 claims (with a filed amount totaling $55 million) have been resolved. The shares remaining in reserve for issuance to unsecured claimants are sufficient for resolution of approximately $90 million in unsecured claims.
- How long until all remaining bankruptcy claims are resolved?
Penn Virginia strives to resolve outstanding claims as quickly as reasonably possible and is hopeful that all remaining claims will be resolved by the end of 2017. However, the timing of resolution of claims is subject to many factors, many of which are beyond Penn Virginia’s control. It is possible that resolution of remaining claims will take much longer than anticipated.
- I acquired restricted shares in connection with the bankruptcy. How can I convert the restricted shares to unrestricted shares?
Currently, you may only remove restrictive legends on your restricted shares in connection with a sale of such shares. If you are selling your restricted shares, please contact Penn Virginia at email@example.com and Penn Virginia will send you forms meeting the transfer agent’s requirements to remove legends on your shares, subject to the requirements under the securities laws. You should consult your attorney regarding sales or other transfers of unregistered shares of stock; Penn Virginia does not provide legal advice to its shareholders.
- When will I be able to convert my restricted shares to unrestricted shares if I do not plan to sell the securities?
Penn Virginia intends to remove the restrictive legend on all restricted shares held by nonaffiliates (and not held by an affiliate for three months) once all such shares have been held for one year in compliance with Rule 144 of the Securities Act, which is expected to be in late September or early October 2017.