Bankruptcy: EMG’s Ascent Resources Marcellus emerges from Chapter 11


[Context: On March 30, Energy Minerals Group-backed Ascent Resources Marcellus announced it had emerged from Chapter 11 bankruptcy. Further details and related links are below.]


Ascent Resources Marcellus Holdings And Its Wholly Owned Subsidiaries Emerge From Chapter 11

OKLAHOMA CITY, March 30, 2018 /PRNewswire/ — Ascent Resources Marcellus Holdings, LLC (“Holdings”) and its wholly owned subsidiaries announced today that they have emerged from chapter 11 bankruptcy.

As previously announced on February 6, 2018, Holdings, along with Ascent Resources – Marcellus, LLC (“ARM”) and Ascent Resources Marcellus Minerals, LLC (collectively, the “ARM Entities”) filed voluntary petitions for reorganization under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) to implement a consensual financial restructuring (the “ARM Restructuring”) approved by certain holders of ARM’s first and second lien term loans.

Ascent Resources, LLC, Ascent Resources Utica Holdings, LLC (“ARUH”), Ascent Resources – Utica, LLC (“ARU”) and Ascent Resources Management Services, LLC (“ARMS” and together with ARUH and ARU, the “ARU Entities”) were not a subject of the ARM Restructuring. The ARU Entities are separate and distinct entities that have their own capital structure and financing.

The ARM Restructuring was described in the ARM Entities’ Joint Prepackaged Plan of Reorganization (the “Plan”) and Disclosure Statement (the “Disclosure Statement”) filed with the Bankruptcy Court on February 6, 2018. On March 23, 2018, the Bankruptcy Court approved the Plan and the Disclosure Statement.

On March 30, 2018, the ARM Entities emerged from chapter 11 having satisfied all conditions to effectiveness set forth in the Plan. Pursuant to the Plan, Holdings converted to a Delaware corporation, a new board of directors was appointed for the ARM Entities, including one director appointed by the original equity owners, and the ARM Entities entered into a new management services agreement with ARMS, whereby the existing management team will continue to manage the day-to-day operations of the ARM Entities.

About the ARM Entities: The ARM Entities were formed to acquire, explore for, develop, produce and operate natural gas and oil properties in the Marcellus Shale. The ARM Entities currently own or have the right to develop approximately 43,000 net acres in northern West Virginia.

More about the ARM Restructuring: More information about the ARM Restructuring and these chapter 11 cases can be found in the ARM Entities’ Disclosure Statement available on the ARM Entities’ restructuring website at: