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Vanguard Emerges from Chapter 11 Bankruptcy as Grizzly Energy

July 18, 2019, 08:30 AM
Filed Under: Bankruptcy
Related: Bankruptcies

Vanguard Natural Resources, Inc. announced that it successfully completed its financial restructuring and emerged from Chapter 11 as a new limited liability company under the name of Grizzly Energy, LLC.

Through its financial restructuring, the Company eliminated more than $500 million of secured debt from its balance sheet and significantly enhanced its financial flexibility. At its emergence, the Company is entering into an amended and restated $65 million reserve-based revolving credit facility, a first lien term loan A facility of $65 million and a "last out" first lien term loan B facility of $285 million.  The initial borrowing base under the revolving credit facility shall be $65 million, with the first scheduled redetermination of the revolving credit facility borrowing base in April 2020.

Grizzly will emerge from Chapter 11 with approximately $375 million of funded debt and $47 million of liquidity comprised of more than $7 million in cash and $40 million of unused revolver capacity.

Mr. R Scott Sloan, President and CEO, commented, "We are very pleased to have completed this reorganization and look forward to working with our stakeholders and Board members in charting a course for the Company with this firmer financial footing. I want to also add a special thanks to all of our employees whose dedication and hard work managing and administering our assets has been exceptional during this process."

The new Board of Directors collectively echoed Mr. Sloan's comments stating, "The Board recognizes and appreciates the efforts of management, employees, the advisors and the other stakeholders in collectively completing the restructuring process in under four months.  The Board looks forward to working closely with management to maximize value for our stakeholders."

Evercore Partners Inc. served as financial advisor to the Company, Kirkland & Ellis LLP served as the Company's legal counsel and Opportune LLP served as the restructuring advisors to the Company.

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