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Thursday, May 12, 2016

Magnum Hunter CEO is Out as Company Emerges from Bankruptcy

From a press release:
Magnum Hunter Resources Corporation and certain of its wholly-owned subsidiaries (collectively, the "Company" or "Magnum Hunter") announced today that its chapter 11 plan of reorganization, which was confirmed by the United States Bankruptcy Court for the District of Delaware on April 18, 2016, has gone effective. As planned, Magnum Hunter successfully emerged from chapter 11 less than five months after voluntarily filing for bankruptcy protection to consummate its pre-negotiated plan of reorganization.

The Company completed a very effective balance-sheet restructuring that de-leveraged substantially all of Magnum Hunter's $1 billion of pre-bankruptcy funded indebtedness and converted 100% of its post-filing debtor-in-possession ("DIP") financing into equity pursuant to a consensual debt-to-equity exchange. Previously burdened by cumbersome long-term obligations and declining commodity prices, today Magnum Hunter emerges from bankruptcy with a significantly stronger balance sheet and the ability to focus on creating value and achieving its long-term growth objectives. Most importantly, the Company achieved a successful and expeditious restructuring with minimal disruption to its employees, vendors, and operations. Additionally, after successfully reaching a resolution of all claims and controversies with Eureka Midstream Holdings, LLC and certain of its affiliates, the Company and Eureka will move forward with a stronger relationship post-emergence.

Currently the new Board of Directors is actively engaged in a search for a permanent Chief Executive Officer. In the interim, Joseph C. Daches, current Chief Financial Officer, and Rick S. Farrell, current SVP Business Development/Land, will serve as co-Chief Executive Officers. 
"Magnum Hunter has worked successfully to fulfill the pre-negotiated restructuring support agreement milestones with the objective of achieving the best possible solution for all of our stakeholders. Without the cooperation of our dedicated employees and the strength of our relationships with royalty owners, vendors, suppliers and capital providers, this would not have been possible. Under the direction of our new Board of Directors, we look forward to growing our Company strategically and profitably," said Daches and Farrell.
You can read the entire release by clicking here.

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