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LINN Energy Plan Filed, Disclosure Statement Approved

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LINN Energy and its Debtor affiliates (other than Linn Acquisition Company and Berry Petroleum) filed with the U.S. Bankruptcy Court an Amended Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “On the Effective Date, the Reorganized LINN Debtors shall enter into the LINN Exit Facility, with Reorganized LINN as a holding company and guarantor directly or indirectly holding all of the equity interests of all of the other Reorganized LINN Debtors.”

In addition, “The LINN Exit Facility shall be comprised of: (a) a reserve based lending facility with an initial borrowing base equal to $1.4 billion minus the amount of Reorganized LINN Non-Conforming Term Notes issued to Non-Electing Lenders (as initially divided between a $1.4 billion conforming tranche minus the amount of Reorganized LINN Non-Conforming Term Notes issued to Non-Electing Lenders and $0.0 in a non-conforming tranche), on the terms and conditions set forth in the LINN Exit Facility Documents (the ‘Reorganized LINN Revolving Loan’); and (b) a new first lien term loan in the aggregate original principal amount of $300 million.”

A Court order notes that at the December 8, 2016 Disclosure Statement hearing, the Court conditionally approved the Disclosure Statement and related relief, pending the Company’s filing of this revised and amended Disclosure Statement.

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