Author: Dumpster fire Date:
6/7/2019 6:19:15 PM +1/-0
The breakthrough came after one day in mediation on Friday with U.S. Bankruptcy Judge David Jones, said Dennis Dunne, a lawyer for the unsecured creditor committee.
Before the mediation, PHI had insisted that Gonsoulin be allowed to swap the $130 million loan he made to the company for a new equity stake, which would have allowed him to retain his ownership while his fellow stockholders saw their interest canceled.
Instead, Gonsoulin will be paid $132.5 million in cash and must retire and sign a contract not to compete with PHI or to make any disparaging comments about the company for three years. Gonsoulin’s retirement won’t occur until PHI’s bankruptcy plan takes effect, according to the term sheet.