Atlas Resource Partners’ Joint Prepackaged Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection with the new name Titan Energy. The U.S. Bankruptcy Court confirmed the Plan on August 26, 2016. Titan Energy announced that it has commenced operations as an independent developer and producer of natural gas, crude oil and natural gas liquids with operations in basins across the United States.
Atlas Energy Group operates the Company through a subsidiary and holds a 2% preferred member interest. Titan Energy’s shares are expected to be quoted on the OTC markets in the near future. As of July 1, 2016, The Company’s reserve report estimates the present value of those reserves to be $832 million. Titan Energy will continue to be, through its subsidiary, the leading sponsor and manager of tax-advantaged investment partnerships (drilling partnerships), through which the Company is able to monetize a portion of its undeveloped natural gas, crude oil and natural gas liquids production activities. Daniel Herz, chief executive officer, comments, “I believe Titan is well positioned to take advantage of opportunities in the current energy environment.”
As previously reported, “The Partnership entered into a restructuring support agreement (RSA) with 100% of its revolving credit facility lenders, 100% of its second lien lenders and approximately 80% of its senior noteholders….[T]he agreement (to be implemented under the Prepackaged Plan of Reorganization) will immediately reduce the Partnership’s debt by approximately $900 million and interest expense by $80 million per year. That debt reduction would be accomplished via conversion of $668 million of outstanding senior notes into 90% of the common equity of the restructured company….In addition, the Partnership’s existing common and preferred unit holders will not be entitled to any of the equity of the restructured company, and all existing common and preferred units will be cancelled under the RSA.”
This oil and natural gas producer filed for Chapter 11 protection on July 27, 2016, listing $1.7 billion in pre-petition assets. Read more oil & gas bankruptcy news.