Penn Virginia filed with the U.S. Bankruptcy Court a motion for an order authorizing the Debtors to assume (a) a restructuring support agreement (RSA), (b) backstop commitment agreement and (c) the exit commitment letters and certain fees in connection therewith and granting related relief.
The RSA motion explains, “The global deal embodied in the Restructuring Support Agreement has four key components: a $25 million DIP Financing to be provided by the RBL Lenders as DIP Lenders; a $128 million committed Exit Facility provided by the RBL Lenders as Exit Facility Lenders; a $50 million rights offering backstopped by certain of the Noteholders as Backstop Parties (the ‘Backstop Commitment;); and a commitment by each of the parties to the Restructuring Support Agreement to compromise their existing claims in service of achieving a consensual restructuring. These new sources of liquidity – more than $200 million in total – collectively form the foundation of a restructuring that will deleverage the Debtors’ balance sheet, permit the Debtors to weather the current upheaval in the oil and gas industry, and position the Debtors to emerge from chapter 11 as a strong, competitive company.”
The motion continues, “The Debtors’ funded debt is comprised of (a) approximately $113 million outstanding under the RBL Facility and (b) approximately $1,075 million in principal and approximately $47 million in unpaid interest outstanding under the Notes….As of the last borrowing base redetermination in November 2015, the borrowing base for the RBL Facility was $275 million. But, under the terms of the Eleventh RBL Amendment, the commitment amount was reduced to amounts outstanding – approximately $113 million as of the Petition Date.”
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