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Warren Resources Supplement Amended, Plan Confirmed

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Warren Resources filed with the U.S. Bankruptcy Court certain amendments to the Supplement for its Amended Chapter 11 Plan of Reorganization. The Supplement contains the following Exhibits: Exhibit A: credit agreement governing the new first lien facility, Exhibit B: new equity holder agreement, Exhibit C: warrant agreement, Exhibit D: management incentive plan, Exhibit E: identities of the initial members of the new board and reorganized Warren Resources’ .C.E.O, Exhibit F: by-laws for reorganized Warren Resources, Exhibit G: certificate of incorporation for reorganized Warren Resources. The Court subsequently confirmed Warren Resources’ Amended Chapter 11 Plan of Reorganization.

According to documents filed with the Court, “The Restructuring will reduce the amount of the Debtors’ outstanding indebtedness by converting the claims of the First Lien Lenders, Second Lien Lenders and holders of Senior Notes into equity in the Reorganized Debtors and (in the case of the First Lien Lenders) the New First Lien Facility. Existing equity in Warren will be cancelled. By deleveraging their balance sheet, the Debtors will have more liquidity to develop their assets and operate their business.”

Court-filed documents further note, “Pursuant to the terms of the agreed restructuring and as more fully described in the RSA and related documents, the First Lien Lenders will convert their outstanding claims into the New First Lien Facility in the amount of $130 million (plus, at the Plan Sponsor’s option, any outstanding amounts on the DIP Financing up to $20 million) and 82.5% of the equity in the Reorganized Debtors to be reduced by the Claren Road Supplemental Equity Distribution. The General Equity Pool, which consists of the remaining 17.5% of equity in the Reorganized Debtors will be divided, pro rata, among the Second Lien Lenders, Senior Noteholders and Citrus Energy (if allowed as a general unsecured claim, and if so allowed in an amount not exceeding $8.5 million). Additionally, the Second Lien Lenders will receive their pro rata proportion of the Claren Road Supplemental Equity Distribution and New Warrants….Existing equity in Warren will be cancelled.”

This oil and gas exploration and production company filed for Chapter 11 protection on June 2, 2016, listing $235 million in pre-petition assets. Read more oil & gas bankruptcy news.

The post Warren Resources Supplement Amended, Plan Confirmed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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