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Halcon Resources RSA Approved

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The U.S. Bankruptcy Court issued an order approving Halcon Resources’ motion to assume restructuring support agreement and modify automatic stay.

As previously reported, “Pursuant to the Plan, the Debtors are proposing a restructuring, with the support of each of the voting classes of claims and interests and certain other interested parties, that, among other things, provides the following: An agreement with the Debtors’ first lien revolving credit agreement lenders to provide financing during the chapter 11 cases in the form of a $600 million debtor-in-possession financing facility that will convert to an exit facility upon emergence from chapter 11; Conversion of the Debtors’ senior secured third lien notes into a pro rata share of approximately 76.5% of the equity in Reorganized Holdings, together with a cash payment of approximately $33.8 million; Conversion of the Debtors’ senior unsecured notes into a pro rata share of approximately 15.5% of the equity in Reorganized Holdings, warrants to purchase an additional 4.0% of the new equity in Reorganized Holdings, and approximately $37.6 million in cash; Conversion of the Debtors’ convertible note into approximately 4.0% of the equity in Reorganized Holdings, warrants to purchase an additional 1.0% of the new equity in Reorganized Holdings, and $15.0 million in cash.”

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