LINN Energy LLC (NASDAQ: LINE) has entered into a settlement agreement with certain holders of the company’s $1 billion of outstanding 12% senior secured second lien notes due 2020, which collectively hold more than two-thirds of the outstanding principal amount of the second lien notes.
Under the terms of the settlement agreement, LINN delivered the mortgages associated with the second lien notes and is no longer in default under the indenture governing these notes.
The settlement agreement provides that LINN and the second lien note holders will begin good faith negotiations with each other regarding the terms of a potential comprehensive and consensual restructuring of the company’s indebtedness, including a potential restructuring under a Chapter 11 plan of reorganization. LINN expects to continue operations throughout this process. The settlement agreement has been filed on Form 8-K with the US Securities and Exchange Commission.