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LINN Energy Chapter 11 Petition Filed

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LINN Energy and 14 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 16-60040. The Company, which acquires, develops and maximizes cash flow from a growing portfolio of long-life oil and natural gas assets, is represented by Patricia Baron Tomasco of Jackson Walker.

The Company concurrently announced its entry into a restructuring support agreement (RSA) with holders of at least 66.67% by aggregate outstanding principal amounts of LINN Energy’s amended and restated credit agreement and Berry Petroleum’s second amended and restated credit agreement. Mark E. Ellis, chairman, president and C.E.O., comments, “We believe the Restructuring Support Agreement reflects the confidence of our first lien lenders in the quality of our assets and represents an important step forward for the Company. After our review of the available options, with the assistance of our financial and legal advisors, we determined that this court supervised financial restructuring process is the best course of action for the Company and our stakeholders. Like many others in our industry, LINN has been impacted by continued low commodity prices.”

Under the RSA, the parties agreed to support a plan of reorganization for the Company that would include the following: (1) a new LINN $2.2 billion reserve-based and term loan credit facility on the terms set forth in the RSA, (2) the consensual use of LINN and Berry’s cash collateral to fund the Chapter 11 cases under negotiated terms and conditions and (3) the broad terms of a comprehensive restructuring of the Company’s indebtedness. LINN Energy anticipates that the cash available to it during its Chapter 11 cases will likely provide sufficient liquidity to support the business during the financial restructuring process and does not currently intend to seek debtor-in-possession financing.

Read more LINN Energy bankruptcy news.

 

The post LINN Energy Chapter 11 Petition Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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