Vanguard Natural equity committee to withdraw objections, support plan

By Caroline Salls

Pittsburgh, July 14 – Vanguard Natural Resources, LLC reached a settlement under which an informal equity committee agreed to withdraw its objections to the company’s plan of reorganization and fully support a modified plan, according to a news release.

Vanguard said the modified plan extends the expiration deadline for new warrants from three years to three and a half years for both preferred and common units.

Holders of the company’s common units will receive distributions of new warrants regardless of whether two-thirds of the common units vote as a class to accept the modified plan.

The definition of “exculpated parties” will be amended to add the informal equity committee.

The modified plan provides for the payment of up to $350,000 of fees and expenses of the committee’s advisers in addition to those previously agreed.

All deposition notices and other discovery taken by the committee against any other party will be immediately withdrawn, and any scheduled depositions will be canceled.

According to the release, the equity committee recommends that holders of Vanguard’s common units who have not voted to vote in favor of the modified plan to do so by 1 p.m. ET on July 17. The committee also recommends that holders of the common units who initially voted to reject the plan submit new ballots accepting it by the deadline.

Vanguard is a Houston-based oil and gas exploration and development company. The company filed for bankruptcy on Feb. 1, 2017 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 17-30560.

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