Linn Energy, LLC Files For Bankruptcy in Victoria, Texas

On May 11, 2016, Linn Energy, LLC  and certain of its affiliates (collectively, “Linn Energy” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, Victoria Division. According to the declaration of Linn Energy’s Chief Operating Officer, Arden L. Walker (the “Walker Declaration”), Linn Energy has entered into a restructuring support agreement with holders of more than 66.67% of issued debt. The agreement contemplates a plan that would include a new $2.2 billion reserve-based and term loan credit facility and a swap of unsecured debt for equity in the reorganized Linn Energy.  See Walker Declaration at 16-19.Debtors’ operations involve the acquisition and development of long-life oil and natural gas assets. Debtors have approximately 27,000 gross productive wells and 4.5 trillion cubic feet equivalent of proved reserves of oil, natural gas and natural gas liquids. See Walker Declaration at 6.Debtors’ liabilities total approximately $7.695 billion in funded debt obligations which include: (i) $1.9 billion pursuant to a 2013 Lien Credit Agreement with Wells Fargo Bank N.A., as administrative agent; (ii) $1 billion pursuant to a 2015 Second Lien Notes with Delaware Trust Company, as successor trustee; (iii) $3.023 billion pursuant to several senior unsecured notes with Wilmington Trust Company, as indenture trustee; (iv) $899 million pursuant to a 2010 reserve-based credit facility with Wells Fargo Bank, N.A., as administrative agent; and (v) $832 million in unsecured notes issued under a 2006 Indenture with The Bank of New York Mellon Trust Company, N.A., as successor trustee.  See Walker Declaration at 53-59.The Debtors cases are jointly administered under the lead bankruptcy case In re Linn Energy, LLC, et al., Case No. 16-60040.A copy of the Walker Declaration can be accessed here: Download Walker Declaration.For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney. For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.