Vanguard Natural Resources Inc. filed for Chapter 11 protection on April 1, marking the second time the Houston-based E&P has entered bankruptcy since the 2014 oil crash.
As part of the restructuring, the company said it obtained a $130 million debtor-in-possession financing facility, underwritten by Citibank NA. The financing, subject to court approval, is expected to give the company sufficient liquidity during the Chapter 11 process.
R. Scott Sloan, president and CEO, said in a statement: “The restructuring steps that we have announced today are necessary to attain a capital structure which is suitable for Vanguard’s assets and future business strategy. We are now focused on expediting an efficient in-court restructuring, maintaining our operational momentum and upholding our obligations to our employees and vital vendors and stakeholders.”
Vanguard had previously entered bankruptcy early 2017, joining a long list of energy firms that had succumbed to weak oil prices at the time. The company emerged from bankruptcy in August 2017, completing its financial restructuring that eliminated about $820 million of debt, and launched plans to sell nearly 10% of its sprawling 774,000 net acres.
Vanguard 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.
Kirkland & Ellis LLP is serving as Vanguard’s legal counsel and Evercore Partners is its financial adviser. Opportune LLP is the company’s restructuring adviser.
The company put proven reserves at between 3 and 10 million standard cubic meters of recoverable oil equivalent based on preliminary estimates.
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