The energy industry’s latest Chapter 11 bankruptcy has been filed by Houston-based Vanguard Natural Resources LLC, a company that sold its Oklahoma holdings last year as it struggled with growing debt. It listed $708 million in debt.
The company said the restructuring under Chapter 11 is under the company’s reserve-based credit facility and senior unsecured debt. It’s already entered into an agreement with certain consenting holders of the company’s senior notes due 2020, senior notes due 2019 and senior secured second lien notes due 2023.
Vanguard’s obtained a $50 million debtor-in-possession financing facility underwritten by Citibank, JPMorgan Securities LLC and Wells Fargo Bank. It will allow the company to continue business.
Eleven months ago, Vanguard agreed to sell assets in Oklahoma for $280 million to entities managed by Dallas-based Titanium Exploration Partners LLC. It was in October 2015 when Vanguard purchased two other Houston-based energy companies within one week. One was valued at $539 million including debt and the other had a value of $614 million.