Ascent Resources Prepackaged Bankruptcy


Privately-held Ascent Resources Marcellus Holdings (ARM) (f/k/a American Energy Marcellus Holdings) and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-10265.

The Company, which acquires, develops, operates and produces oil and natural gas properties, is represented by Pauline K. Morgan of Young Conaway Stargatt & Taylor. The Company notes that the bankruptcy filing was initiated in order to implement a consensual financial restructuring (“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. Ascent Resources, Ascent Resources Utica Holdings, Ascent Resources – Utica and Ascent Resources Management Services are not included in the ARM Restructuring and their operations remain unaffected by the ARM Restructuring.

Concurrent with the Chapter 11 petition, the Company also filed a Chapter 11 Plan of Reorganization and related Disclosure Statement. According to documents filed with the Court, “The relative downturn in natural gas and oil prices beginning in the third quarter of 2014 and continuing to date, combined with the decline in ARM’s production volume, has significantly decreased the Debtors’ revenues from product sales and the amount of internally generated cash available for operating expenses. Even after accounting for the recent uptick in natural gas, oil and NGL prices, revenue generated from product sales is insufficient to cover the Debtors’ expenses and production volume is insufficient to satisfy contractual commitments.”

Ascent Resources Marcellus Holdings’ Chapter 11 petition indicates assets greater than $500 million.

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