Magnum Hunter Resources Corporation and certain of its wholly-owned subsidiaries announced that the Bankruptcy Court for the District of Delaware has confirmed Magnum Hunter's chapter 11 plan of reorganization. Confirmation of Magnum Hunter's chapter 11 plan is a critical and near-final step toward its emergence from Chapter 11, which will conclude a balance sheet restructuring process that de-leverages substantially all of Magnum Hunter's pre-bankruptcy funded indebtedness and converts 100% of its post-filing debtor-in-possession ("DIP") financing into equity pursuant to a consensual debt-to-equity exchange.
Magnum Hunter filed for chapter 11 protection on December 15, 2015. Prior to commencing the Chapter 11 cases, Magnum Hunter entered into a restructuring support agreement with lenders holding 75% in aggregate principal amount of its pre-bankruptcy funded debt claims, pursuant to which the lenders agreed to support Magnum Hunter's chapter 11 process and convert 100% of their debt claims to equity in the reorganized Company. The Company's plan was overwhelmingly accepted by creditors entitled to vote. Magnum Hunter anticipates that the plan will become effective and it will emerge from bankruptcy on or before May 3, 2016. The effectiveness of the plan is contingent on the Company's satisfaction of a number of conditions that are set forth in the plan and the order of the Bankruptcy Court confirming the plan. Magnum Hunter's balance sheet restructuring is the result of the Company's diligent efforts to meet the required milestones under the Restructuring Support Agreement with the goal of achieving the best possible outcome for all of the Company's constituents. Following confirmation, Magnum Hunter will work cooperatively with its constituents to emerge from bankruptcy as a stronger company.
Court filings and other information related to the restructuring proceedings are available at a website administered by the Company's claims agent, Prime Clerk, at https://cases.primeclerk.com/magnumhunter.
PJT Partners LP is serving as financial advisor to Magnum Hunter, Kirkland & Ellis LLP is serving as legal counsel, and Alvarez & Marsal North America, LLC is serving as restructuring advisor. Weil, Gotshal & Manges LLP and Houlihan Lokey are serving as legal counsel and financial advisors, respectively, to an ad hoc group of holders of the Company's second lien debt in their capacity as prepetition lenders and postpetition DIP lenders. Akin Gump Strauss Hauer & Feld LLP and Centerview Partners are serving as legal counsel and financial advisors, respectively, to an ad hoc group of holders of the Company's senior unsecured notes in their capacity as prepetition lenders and postpetition DIP lenders.
Magnum Hunter Resources Corporation is an independent energy company engaged in the acquisition, production, exploration, and development of onshore natural gas and oil properties in the United States.