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consummation date CDC's stock had not been sold, CDC would (1)
transfer any rigs that it continued to own to Chase Manhattan
Bank, N.A., as agent for the bank group, in satisfaction of the
bank group's secured claims, (2) liquidate its other remaining
assets, and (3) distribute the proceeds of the liquidation pro
rata to all creditors holding unsecured claims. Less than 6
months after the bankruptcy court entered a confirmation order,
Samson purchased all of CDC's stock; therefore, no liquidation
was necessary.
The amended plan provided for the issuance of stock in CDC
to a trust (the shareholder trust) for the benefit of unsecured
creditors. The five-member board of directors of CDC included
three representatives of the bank group and one unsecured
creditor. During CDC's reorganization, CDC managed its own
affairs through the efforts of its own officers, Messrs. Arnold
and West. The role of the bank group in the business affairs of
CDC did not increase during the period of CDC's chapter 11
reorganization. The bank group would have made cash from the SCA
available to CDC for drilling operations if CDC had presented
them with a profitable contract. Richard D. Barton, a vice
president at Seattle-First, and John F. Jerow, a vice president
at Chase, agreed that the bank group would have allowed CDC to
use funds in the SCA to conduct drilling operations if CDC could
have obtained a profitable drilling contract.
The bankruptcy proceeding discharged CDC's debts other than
the debt to the bank group. The discharge eliminated CDC's
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