[Context: On February 6, Energy & Minerals Group– and First Reserve-backed Ascent Resources voluntarily filed Chapter 11. Last fall, Ascent Resources provided a comprehensive overview of its operations, a summary of which is available here. Further details and related links are below.]


Ascent Resources | Energy & Minerals Group

Ascent Resources Marcellus Holdings And Its Wholly Owned Subsidiaries Commence Voluntary Chapter 11 Filings To Effectuate Financial Restructurin

OPERATIONS OF ASCENT RESOURCES UTICA HOLDINGS AND ASCENT RESOURCES – UTICA UNAFFECTED BY THE FILING

OKLAHOMA CITY, Feb. 6, 2018 /PRNewswire/ — Ascent Resources Marcellus Holdings, LLC and its wholly owned subsidiaries, Ascent Resources – Marcellus, LLC (“ARM”) and Ascent Resources Marcellus Minerals, LLC (collectively, the “ARM Entities”) commenced voluntary chapter 11 cases 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. The ARM Restructuring is a negotiated balance sheet restructuring being undertaken to reduce the long-term debt of, and improve the liquidity of, the ARM Entities. The ARM Restructuring is not an operational restructuring and is not intended to restructure or compromise any vendor, service provider, contractor, lessor, working interest owner or royalty owner obligations.

On February 2, 2018, the ARM Entities began the solicitation of votes to accept the negotiated chapter 11 plan of reorganization (the “Plan”) from ARM’s secured creditors. Only holders of ARM’s first and second lien term loans are entitled to vote to accept or reject the Plan. Vendors and service providers will not be impaired by the Restructuring and will be paid in the ordinary course of business. As of the chapter 11 filing, the ARM Entities have the creditor votes necessary for the Plan to receive approval from the Bankruptcy Court, with holders of 78% of the first lien term loans and 79% of the second lien term loans having voted to accept the Plan.

We anticipate that the ARM Entities will be in chapter 11 for approximately 45 to 60 days and that the ARM Entities will continue to operate in the ordinary course of business during this period. Upon emergence from bankruptcy, a new board of directors will be appointed for the ARM Entities, including one director appointed by the current equity owners, and the ARM Entities will enter into a new management services agreement with Ascent Resources Management Services, LLC, whereby the existing management team will continue to manage the day-to-day operations of the ARM Entities.

Ascent Resources, LLC, Ascent Resources Utica Holdings, LLC, Ascent Resources – Utica, LLC and Ascent Resources Management Services, LLC (together, the “Ascent Entities”) are not included in the ARM Restructuring and their operations remain unaffected by the ARM Restructuring. The Ascent Entities are separate and distinct entities that have their own capital structures, financing and operations. The Ascent Entities do not guarantee any of the ARM Entities debt.

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.

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