Union Oil Claim Threatens Pacific Energy Ch.11 Plan

Law360, New York (October 12, 2010, 4:39 PM EDT) -- Pacific Energy Resources Ltd.’s Chapter 11 plan confirmation stumbled out of the gates Tuesday as a bankruptcy judge indicated he would allow a $22 million administrative claim against the debtor that threatens a $40 million proposed settlement with the state of Alaska — a key component of the debtors’ plan.

Judge Kevin J. Carey preempted Pacific Energy’s plan confirmation hearing with the announcement that he would allow Union Oil Co. of California’s claim against debtor Pacific Energy Alaska Operating LLC stemming from Union’s upkeep of certain...
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