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Atlas Resource Partners RSA Approval Sought

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Atlas Resource Partners filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing the assumption of the restructuring support agreement (RSA).

According to documents filed with the Court, “Specifically, the consensual restructuring facilitated by the Restructuring Support Agreement allows the Debtors to deleverage their balance sheet and reduce annual debt service obligations by approximately $77 million, maximize their enterprise value on a going-forward basis, and provide a full recovery for unsecured creditors (other than to the holders of Notes Claims, whose claims will be equitized). Moreover, the consensual restructuring could allow certain long-term holders of equity interests in the Debtors, under certain circumstances, to mitigate the negative tax effects from the cancellation and discharge or modification of the Debtors’ indebtedness and from the realization of income from the sale of the Debtors’ hedge portfolio. Importantly, the Debtors also negotiated and obtained the ‘fiduciary out,’ and the ability to respond to unsolicited proposals of any better alternative transaction, thereby preserving third parties’ right to propose alternative restructurings, to the ultimate benefit of the Debtor’s creditors and estate.”

The RSA motion continues, “Each existing Secured Swap Agreement shall, before the Petition Date, have been terminated and the net proceeds thereof (less $25 million) shall be used, subject to the sharing provisions contained in the First Lien Credit Agreement, to indefeasibly repay the outstanding obligations under the First Lien Credit Agreement down to $440 million, or such other amounts as mutually agreed to by the First Lien Agent and ARP.”

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The post Atlas Resource Partners RSA Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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