Enduro Resource Partners Chapter 11 Petition Filed

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Privately-held Enduro Resource Partners and 5 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-11174. The Company, which is engaged in the production and development of oil and natural gas from properties located in Texas, Louisiana, New Mexico, Wyoming and North Dakota, is represented by Michael R. Nestor of Young Conaway Stargatt & Taylor.

Further engagements include Latham & Watkins as co-counsel, Evercore Group as financial advisor and Alvarez & Marsal as restructuring advisor. According to a press release issued in respect of the filing, Enduro intends to pursue a sale process under Section 363 of the U.S. Bankruptcy Code, including in respect of its outstanding units in Enduro Royalty Trust. To this end, Enduro has entered into three stalking horse purchase agreements which are subject to higher and better bids and which Enduro expects to begin soliciting promptly.

The press release further notes that (i) Enduro has reached an agreement with its first lien lenders to utilize their cash collateral to fund the Company throughout the sale process and (ii) that Enduro Royalty Trust, a publicly-traded Delaware statutory trust which owns a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain Enduro properties, has not filed a chapter 11 petition and will also continue to operate in the normal course. Enduro’s petition notes between 10,000 and 25,0000 creditors; estimated assets between $100 million and $500 million; and estimated liabilities between $100 million and $500 million. Enduro has further provided a list of its 30 largest unsecured creditors, the largest of which has an unsecured claim of $724,924.

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