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Vanguard Natural Resources Files for Bankruptcy Again

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   |    Monday,April 01,2019

Vanguard Natural Resources, Inc. has filed for bankruptcy.

This is the second time the company has filed Chapter 11 - Vanguard emerged from its last bankruptcy filing in Q3 2017.

Mr. R. Scott Sloan, President and CEO, commented, "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."

Sloan had just been appointed CEO in early 2018. In the months since, Vanguard sold off some of its assets in the DJ and Arkoma basins for ~$15 million.

Filing Details

The Company has obtained a committed $130 million debtor-in-possession financing facility (DIP Facility), which contemplates $65.0 million in new money, up to $20.0 million of which will become immediately available upon Bankruptcy Court approval and $65.0 million of which will roll up obligations in respect of revolving loans under the Company's existing credit agreement.

The DIP Facility is underwritten by Citibank, N.A. Subject to Court approval, this DIP financing, combined with the Company's cash from operations, is expected to provide sufficient liquidity during the chapter 11 cases to support its continuing business operations and minimize disruption.

Kirkland & Ellis LLP is serving as legal counsel and Evercore Partners is acting as financial advisor to Vanguard. Opportune LLP is the Company's restructuring advisor.

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