The U.S. Bankruptcy Court approved Vanguard Natural Resources’ Disclosure Statement and scheduled a July 18, 2017 hearing to consider its Amended Chapter 11 Plan of Reorganization.
According to the Disclosure Statement, “On the Effective Date, the applicable Consenting Senior Noteholders will consummate the Term Loan Purchase by purchasing, in the aggregate, $31.25 million in principal amount of Exit Term A Loans on a pro rata basis from the Option 1 Lenders for an aggregate payment in Cash of $31.25 million to the administrative agent for the Exit Term A Loans for the benefit of the Option 1 Lenders in accordance with their Option 1 Pro Rata Share.”
In addition, “Specifically, the Plan provides for: (a) The Rights Offering, consisting of (i) a $10.176081 million rights offering to be conducted in reliance upon the exemption from registration under the Securities Act provided in section 1145 of the Bankruptcy Code (the ‘1145 Rights Offering’), pursuant to which Holders of Senior Notes Claims are entitled to purchase equity in Reorganized VNR Finance (the ‘1145 Rights Offering Equity’), (ii) a $117.698919 million rights offering to be conducted in reliance upon the exemption from registration under the Securities Act provided in section 4(a)(2) of the Securities Act (the ‘Accredited Investor Rights Offering’), pursuant to which Accredited Investor Eligible Holders of Senior Notes Claims are entitled to purchase equity in Reorganized VNR Finance (the ‘Accredited Investor Rights Offering Equity’), and (iii) a $127.875 million equity investment (the ‘4(a)(2) Backstop Commitment’), pursuant to which the Commitment Parties will purchase equity in Reorganized VNR Finance (the ‘4(a)(2) Backstop Commitment Equity’); (b) A fully committed $19.25 million equity investment from the Second Lien Investors for shares of New Common Stock equal to 6.4% of the aggregate New Common Stock as of the Effective Date and subject to dilution as set forth in the Plan (the ‘Second Lien Investment Equity’); (c) A full recovery for Holders of Allowed Lender Claims consisting of (i) cash in the amount of the Credit Agreement Interest plus (ii) cash in the amount of its Pro Rata share of the Glasscock Sale Proceeds.”
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