LINN Energy, Berry win bankruptcy court OK of key first-day motions

By Caroline Salls

Pittsburgh, May 13 – LINN Energy, LLC, LinnCo, LLC and Berry Petroleum Co., LLC received court approval of the key first-day motions related to their ordinary course business operations, according to a company news release.

LINN said the motions approved by the U.S. Bankruptcy Court for the Southern District of Texas give it the authority to continue to pay employee wages and benefits without interruption, to utilize its current cash management system and to make royalty payments.

In addition, the company received court approval of a motion that will allow it to use its cash to fund its Chapter 11 cases under an agreement with its first-lien lenders. The cash use approval will be reflected in an order scheduled to be entered on May 16.

LINN said it expects the cash available to it during its Chapter 11 cases to provide sufficient liquidity to support the business during the financial restructuring process.

For goods and services provided after the Chapter 11 filing, the company intends to pay vendors in full under normal terms. LINN said it also intends to meet its obligations in the ordinary course and expects its operations to continue uninterrupted throughout the reorganization process.

According to the release, the court also approved keeping the company’s previously announced exchange offer open uninterrupted. The offer is scheduled to expire at midnight ET on May 23.

LINN Energy is a Houston-based oil and gas company. The Chapter 11 case number is 16-60040.

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