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Legacy Reserves to File for Bankruptcy

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   |    Tuesday,June 11,2019

Legacy Reserves LP expects to file for bankruptcy in order to facilitate its restructuring support agreement with its lenders.

The Plan is expected to be filed within 30 days following the commencement of the chapter 11 cases. The Company is also in active discussions with the advisors for a group of the Company's noteholders regarding terms for their support of the Restructuring Agreement.

The DIP financing, subject to Court approval, will refinance portions of the Company's existing reserve-based credit facility and provide an additional $100 million in new money to support the Company's day-to-day operations and finance the restructuring process. The Restructuring Agreement further provides that, upon confirmation of the Plan and emergence from chapter 11, the Company will obtain access to a senior secured asset-based lending credit facility in a maximum amount of $500 million provided by certain of the existing RBL Lenders.

Perella Weinberg Partners and its affiliate, Tudor Pickering Holt & Co., is acting as financial advisor for the Company, Sidley Austin LLP is acting as legal advisor, and Alvarez & Marsal is acting as restructuring advisor. PJT Partners LP is acting as financial advisor for GSO Capital Partners LP, and Latham & Watkins LLP is acting as legal advisor.



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