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Atlas Resource Partners Chapter 11 Petition, Plan Filed

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Atlas Resource Partners (the Partnership) and more than 20 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 16-12149.

The Company, which develops, acquires and manages oil and gas properties, is represented by David M. Turetsky of Skadden, Arpls, Slate, Meagher & Flom. Concurrent with the petition, the Company also filed with the Court a Joint Prepackaged Chapter 11 Plan of Reorganization and related Disclosure Statement.

The Partnership recently announced its entry into a restructuring support agreement (RSA) with 100% of its revolving credit facility lenders, 100% of its second lien lenders and approximately 80% of its senior noteholders. If completed, the agreement (to be implemented under the Prepackaged Plan of Reorganization) will immediately reduce the Partnership’s debt by approximately $900 million and interest expense by $80 million per year. That debt reduction would be accomplished via conversion of $668 million of outstanding senior notes into 90% of the common equity of the restructured company (upon Plan consummation and from proceeds of the sale of the Partnership’s natural gas and oil hedge positions to make repayments under its existing revolving credit facility).

Under the RSA, cash interest expense payable on the second lien term loan will be immediately reduced to 2%, and second lien term loan holders will also receive 10% of the common equity of the post-emergence company. In addition, the Partnership’s existing common and preferred unitholders will not be entitled to any of the equity of the restructured company, and all existing common and preferred units will be cancelled under the RSA.

The Partnership expects to emerge from bankruptcy as Titan Energy under the leadership of Ed Cohen, executive chairman; Jonathan Cohen, executive vice chairman; Daniel Herz, C.E.O.; Mark Schumacher, president; and Jeffrey Slotterback, C.F.O. Read more Atlas bankruptcy news.

The post Atlas Resource Partners Chapter 11 Petition, Plan Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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