Linn Energy, LLC announced Wednesday that it filed for Chapter 11 bankruptcy after entering into a Restructuring Support Agreement with its lenders to obtain new financing and restructure debt.
In its petition filed in the U.S. Bankruptcy Court in Victoria, Texas, the Houston-based oil and gas producer said its assets are worth approximately $11.6 billion, with debts listed at $8.3 billion. Kirkland & Ellis LLP is serving as the company’s legal advisor.
Linn Energy received court approval of certain motions to support “ordinary course” business operations on Thursday, allowing the company to continue paying employee wages and benefits without interruption, utilizing its current cash management system and making royalty payments.
“With these approvals, the Company will continue normal operations as we implement a comprehensive financial restructuring,” said Mark E. Ellis, Chairman, President and Chief Executive Officer of Linn Energy.
In March, the oil and gas producer warned of the potential for a bankruptcy filing.
According to the company’s website, Linn Energy established operations in March 2003.
In 2013, Linn Energy employed almost 400 people in Oklahoma, including about 150 at its Oklahoma City office. It also has several field offices around the state, according to a news report published in The Oklahoman.