Magnum Hunter Resources emerges from Chapter 11 bankruptcy

Magnum Hunter says it also resolved business disputes with Eureka Midstream Holdings, LLC

IRVING, Texas – Magnum Hunter Resources Corporation and certain of its wholly-owned subsidiaries announced that its Chapter 11 plan of reorganization, which was confirmed by the United States Bankruptcy Court for the District of Delaware on April 18, is now effective.

magnum-hunter-logoMagnum Hunter emerged from Chapter 11 less than five months after voluntarily filing for bankruptcy protection to consummate its pre-negotiated plan of reorganization.

The company completed a balance-sheet restructuring that de-leveraged substantially all of its $1 billion of pre-bankruptcy funded indebtedness and converted 100 per cent of its post-filing debtor-in-possession (“DIP”) financing into equity pursuant to a consensual debt-to-equity exchange.

Magnum Hunter said in a press release that it has emerged from bankruptcy “with a significantly stronger balance sheet and the ability to focus on creating value and achieving its long-term growth objectives.”

Magnum Hunter says it also resolved all claims and controversies with Eureka Midstream Holdings, LLC and certain of its affiliates, and the company and Eureka will move forward with a stronger relationship post-emergence.

Currently the new Board of Directors is actively engaged in a search for a permanent Chief Executive Officer.

In the interim, Joseph C. Daches, current Chief Financial Officer, and Rick S. Farrell, current SVP Business Development/Land, will serve as co-Chief Executive Officers.

“Magnum Hunter has worked successfully to fulfill the pre-negotiated restructuring support agreement milestones with the objective of achieving the best possible solution for all of our stakeholders. Without the cooperation of our dedicated employees and the strength of our relationships with royalty owners, vendors, suppliers and capital providers, this would not have been possible. Under the direction of our new Board of Directors, we look forward to growing our company strategically and profitably,” said Daches and Farrell in the release.

Posted in: Energy Financial

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