New Chapter 11 Filing - Ascent Resources Marcellus Holdings, LLC

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Ascent Resources Marcellus Holdings, LLC

  • 2/6/18 Recap: Oklahoman producer of oil and natural gas in the Marcellus Shale basis filed for bankruptcy to effectuate a prepackaged bankruptcy in agreement with its major creditors. We've seen this movie before. Business is capital intensive...yada yada yada...natural gas prices rolled over...yada yada yada...production volume dropped...yada yada yada...over-levered balance sheet....zzzzz. Basically, you know the drill. The prepackaged plan envisions the term lenders equitizing their debt so that the company can be leaner and meaner; it also leaves open the option for a sale, but no such sale was suitable prior to filing. 
  • Jurisdiction: D. of Delaware
  • Capital Structure: $750mm first lien credit facility (Cortland Capital Market Services LLC), $450mm second lien secured term loan facility (Cortland)  
  • Company Professionals:
    • Legal: Sullivan & Cromwell LLP (Andrew G. Dietderich, Brian D. Glueckstein, Alexa J. Kranzley) & (local) Young Conaway Stargatt & Taylor LLP (Pauline K. Morgan, Joel A. Waite, Kara Hammond Coyle)
    • Financial Advisor: D.R. Payne & Associates, Inc.
    • Investment Banker: PJT Partners (Steven Zelin)
    • Claims Agent: Prime Clerk LLC (*click on company name above for free docket access)
    • Independent Co-Manager: Alan Carr
  • Other Parties in Interest:
    • First Lien Credit Agent: Cortland Capital Market Services LLC
      • Legal: Davis Polk & Wardwell LLP
      • Financial Advisor: Moelis & Co. 
    • Second Lien Credit Agent: Cortland Capital Market Services LLC
  • Members of the New Board: Jeffrey A. Fisher, Jeffrey A. Ball, Steven J. Pully, Eugene I. Davis, Barry McMahan

Updated: Effective 3/30/18 (no UCC)