Magnum Hunter Confirms Chapter 11 Plan
On April 18, 2016, the United States Bankruptcy Court in Wilmington, Delaware confirmed the chapter 11 plan of reorganization for Magnum Hunter Resources Corp. The company filed for bankruptcy in December 2015, citing debt of more than $1 billion, as well as a worldwide drop in crude oil and natural gas prices. Bankruptcy Judge Kevin Gross overruled objections to the plan by equity holders that questioned the value of the company, saying that an equity committee would not be reasonable. Under the approved plan, all secured claims will be satisfied, unsecured creditors will see a significant recovery of up to 55 percent, and the entirety of Magnum Hunter’s debt, as well as a $200 million debtor-in-possession loan, will be converted completely to equity in the reorganized company.
Laura Davis Jones, Colin Robinson, Joseph Mulvihill, John Morris, Joshua Fried, David Bertenthal, Maxim Litvak, and Victoria Newmark all contributed to this matter.