People | Bankruptcy / Restructure Update | Capital Markets | Credit Facility Change | Bankruptcy Exit

Lonestar Resources Emerges from Bankruptcy

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   |    Tuesday,December 01,2020

Lonestar Resources US Inc. announced that effective November 30, 2020, it has successfully emerged from Chapter 11 bankruptcy.

Lonestar has eliminated approximately $390 million in aggregate debt obligations and preferred equity interests.

Effective today, Lonestar has entered into a new $225 million first-out senior secured revolving credit facility and a $60 million second-out senior secured term loan credit facility by amending and restating the Company's existing credit agreement. At closing, Lonestar has $210 million outstanding on the revolver and a post-emergence cash balance of approximately $20.7 million.

New Board of Directors

In accordance with the Plan, today the Company appointed a newly constituted Board of Directors. The new Board consists of Richard Burnett, Gary D. Packer, Andrei Verona and Eric Long, in addition to Frank D. Bracken, III, Lonestar's Chief Executive Officer.

Issuance of New Securities

Effective immediately, all existing shares of the Company's common stock were cancelled pursuant to the Plan, and the Company issued approximately 10,000,000 shares of new common stock in the Company, par value $0.001 (the "New Common Stock"), to the holders of the Prepetition Notes (as defined in the Plan) and the Company's old common shares and old preferred shares.

Additionally, the Company issued 555,555 Tranche 1 Warrants and 555,555 Tranche 2 Warrants to holders of Allowed Prepetition RBL Claims (as defined in the Plan) or their permitted designees, as applicable.

Advisors

The Company was represented in this matter by Latham & Watkins LLP, Hunton Andrews Kurth LLP, Intrepid Partners LLC, Rothschild & Co US Inc. and AlixPartners, LLP.