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Vanguard Natural Resources files for Chapter 11 protection

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Staff Writer | February 3, 2017
Vanguard Natural Resources together with its wholly owned subsidiaries has voluntarily filed petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.
Vanguard Natural Resources
Bankruptcy   A Restructuring Support Agreement
In connection with the chapter 11 filing, Vanguard has entered into a Restructuring Support Agreement with certain consenting holders of the company's 7.875% Senior Notes due 2020, 8 3/8% Senior Notes due 2019 and 7.0% Senior Secured Second Lien Notes due 2023.

Under the Restructuring Support Agreement, the Restructuring Support Parties agreed to support a plan of reorganization for the vompany that would include a fully committed $19.25 million equity investment by the consenting holders of the Second Lien Notes; and a $255.75 million rights offering that is fully backstopped by the consenting holders of the Senior Notes due 2020 and Senior Notes due 2019.

Through the implementation of the transactions set forth in the Restructuring Support Agreement, the company would eliminate approximately $708 million in debt under the company's reserve-based credit facility and senior unsecured debt.

The company has obtained a committed $50 million debtor-in-possession ("DIP") financing facility underwritten by Citibank, JPMorgan Securities and Wells Fargo Bank.

Subject to court approval, this DIP financing, combined with the company's cash from operations, is expected to provide sufficient liquidity during the chapter 11 cases to support its continuing business operations and minimize disruption.


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