Bankruptcy / Restructure Update | Financial Trouble | Capital Markets

EV Energy Partners Files for Bankruptcy

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   |    Friday,March 16,2018

EV Energy Partners has filed for bankruptcy.

Michael Mercer, President and CEO, commented: "We believe that this provides the best path forward for our Company to reduce leverage, maintain access to liquidity and maximize value for all of our stakeholders. During the restructuring and upon emergence, we expect to have ample liquidity and do not anticipate the need for debtor-in-possession financing or other additional capital."

The company has a diverse asset base across the US:

Upon consummation, the restructuring would, among other things:

• Amend the Company’s reserve-based lending facility;
• Eliminate more than $343 million of principal and accrued interest with respect to the Senior Notes, in exchange for 95% of the reorganized Company’s equity as of the effective date of the Plan (subject to dilution by a management incentive plan and warrants for existing unit holders);
• Pay all supplier, service provider, customer, employee, royalty and working interest obligations in full in the ordinary course; and
• Provide the Company’s existing unitholders with consideration in the form of 5% of the reorganized Company’s equity (subject to dilution by a management incentive plan and warrants for existing unitholders) and 5-year warrants to acquire up to 8% of the equity in the reorganized Company.

Advisors

Kirkland & Ellis LLP is acting as legal counsel and Perella Weinberg Partners LP is acting as financial advisor to the Company in connection with its restructuring efforts. Akin Gump Strauss Hauer & Feld LLP is acting as legal counsel, and Intrepid Partners LLC is acting as financial advisor to the noteholders party to the RSA. Simpson Thacher & Bartlett LLP is acting as legal counsel and RPA Advisors, LLC is acting as financial advisor to the lenders party to the RSA.