Magnum Hunter disclosure statement approved; plan hearing March 31

By Caroline Salls

Pittsburgh, Feb. 26 – Magnum Hunter Resources Corp. obtained court approval of the disclosure statement for its plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for March 31.

As previously reported, Magnum entered into a restructuring support agreement with lenders that hold about 75% in principal amount of its funded debt claims.

The restructuring support agreement calls for the debt-to-equity conversion of substantially all of Magnum’s pre-bankruptcy funded debt and 100% of its post-bankruptcy debtor-in-possession financing.

In addition, the company said the restructuring support agreement provides a “significant cash recovery” to vendors and trade claimants.

All other secured debt will be reinstated, including equipment and real estate notes.

Preferred stock and common shares will be cancelled.

Based in Irving, Texas, Magnum Hunter is an oil and gas exploration company. It filed for Chapter 11 relief on Dec. 15, 2015 under the case number 15-12533.

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