The U.S. Bankruptcy Court issued an order approving Atlas Resource Partners’ Disclosure Statement and concurrently confirming its Joint Prepackaged Chapter 11 Plan of Reorganization.
As previously reported, “The Partnership entered 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)….In addition, the Partnership’s existing common and preferred unit holders 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 Company is expected to emerge from Chapter 11 protection on September 1, 2016 as Titan Energy. Daniel Herz, chief executive officer, comments, “Today’s confirmation was a favorable step on our path to restructuring and we look forward to beginning a new chapter as Titan Energy. The Senior Management team and I want to thank our employees, suppliers, royalty owners, trade partners, and other supportive stakeholders for their continued support, which has allowed the Partnership to continue to operate in the ordinary course of business through this process.” This oil and natural gas producer filed for Chapter 11 protection on July 27, 2016, listing $1.7 billion in pre-petition assets.
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