Vanguard Natural Resources filed with the U.S. Bankruptcy Court a sixth amended Supplement for the Company’s Modified Second Amended Joint Plan of Reorganization, which subsequently became effective. The Court confirmed the Plan on July 18, 2017.
BankruptcyData’s detailed Plan Summary notes, “Specifically, the Plan provides for the following: A Rights Offering, consisting of a $10.176081 million rights offering, a $117.698919 million rights offering, and a $127.875 million equity investment; 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; a full recovery for Holders of Allowed Lender Claims consisting of cash in the amount of the Credit Agreement Interest plus cash in the amount of its pro rata share of the Glasscock Sale Proceeds; the issuance of new notes to Holders of Allowed Second Lien Notes Claims in an aggregate principal amount of approximately $78.075 million, plus accrued and unpaid post-petition interest through the Effective Date.”
At its emergence, the Company is entering into an amended and restated $850 million reserve-based revolving credit facility and a term loan facility of $125 million. The initial borrowing base under the revolving credit facility shall be $850 million, with the first scheduled redetermination of the revolving credit facility borrowing base in August 2018. Vanguard Natural Resources also announced its new board, comprised of the following individuals, including members of management and direct or appointed representatives of the Company’s largest shareholders, whose appointments are now effective: Scott W. Smith, president and C.E.O. of the Company; Richard A. Robert, E.V.P. and C.F.O. of the Company; Michael Alexander, managing director at Marathon Asset Management; Joseph Citarrella, principal at Monarch Alternative Capital; Graham Morris, distressed equity strategy head for Contrarian Capital Management; R. Scott Sloan, former S.V.P., strategy, commercial and global new business development at Hess. Joseph Citarrella will serve as the chair of the new board.
The new board comments, “Vanguard’s high quality asset portfolio offers many avenues for future value creation. We look forward to working closely with management to conduct a thorough strategic review of the Company’s asset base and development plan in order to maximize long-term shareholder value.”
This oil and natural gas properties’ acquirer and developer filed for Chapter 11 protection on February 1, 2017, listing $2.8 billion in pre-petition assets.
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