Vanguard Natural Resources to begin plan-vote solicitation on May 28

By Caroline Salls

Pittsburgh, May 13 – Vanguard Natural Resources, Inc. intends to begin soliciting votes on its plan of reorganization on May 28, according to an 8-K filed Monday with the Securities and Exchange Commission.

As previously reported, Vanguard entered into a plan support agreement on May 8 with holders of more than 66 2/3% in amount and 50.1% in number of the revolving credit facility claims and secured swap claims under a credit agreement between Vanguard Natural Gas, LLC, administrative agent Citibank, NA and some term loan lenders.

The plan support agreement requires the plan to take effect no later than 120 days after the bankruptcy filing date. The agreement will be subject to termination if the plan effective date has not occurred within that timeframe.

Vanguard said the restructuring transactions will be financed by the issuance of new common stock in the reorganized company the issuance of a new series of class A preferred stock, potentially the issuance of a new series of class B preferred stock, a new first-lien reserve-based revolver with an initial borrowing base of $65 million and a term loan lending facility in the total amount of $65 million and a new term loan lending facility in the total amount of $285 million.

Vanguard is a Houston-based oil and gas exploration and development company. The company filed bankruptcy on March 31 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 19-31786.

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