Legacy Reserves emerges from bankruptcy

Dec. 12, 2019
Legacy Reserves Inc., Midland, emerged from bankruptcy after completing its financial restructuring and implementing the company's confirmed plan of reorganization.

Legacy Reserves Inc., Midland, emerged from bankruptcy after completing its financial restructuring and implementing the company's confirmed plan of reorganization. 

The US Bankruptcy Court for the Southern District of Texas confirmed the company's Chapter 11 plan of reorganization in November after Legacy, together with its subsidiaries, filed for chapter 11 protection in June.

The company has reduced its debt through a combination of an equitization of existing debt and $255 million of new equity capital. It emerges with $388 million of total debt outstanding, all of which is under a new reserve-based credit facility with an initial borrowing base of $460 million.

The company emerges with a new board of directors including Gary Gould, former chief operating officer of EQT Corp.; Richard Betz, former chief executive officer and chief operating officer of Resolute Corp.; Robert W. Baker, former executive vice-president and general counsel of El Paso Corp.; David Coppe, former head of energy private equity of Caisse de depot de placement du Quebec; Robert Horn, senior managing director and co-head of GSO's energy group; Dan Westcott, chief executive officer of Legacy; and Kyle Hammond, president and chief operating officer of Legacy.