LINN Energy enters RSA, files Chapter 11

LINN Energy LLC (NASDAQ:  LINE), LinnCo LLC (NASDAQ:  LNCO), and Berry Petroleum Company LLC filed voluntary petitions for restructuring under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas.

LINN has entered into a restructuring support agreement with holders of at least 66.67% by aggregate outstanding principal amounts of LINN's amended and restated credit agreement, dated as of April 24, 2013, as amended, and Berry’s Second Amended and Restated Credit Agreement, dated as of November 15, 2010, as amended.  

The company expects its operations across its asset base to continue in the ordinary course throughout the Chapter 11 process.

Under the restructuring support agreement, the parties agreed to support a plan of reorganization for the company that would include: (1) a new LINN $2.2 billion reserve based and term loan credit facility on the terms set forth in the restructuring support agreement, (2) the consensual use of LINN and Berry’s cash collateral to fund the Chapter 11 Cases under negotiated terms and conditions, and (3) the broad terms of a comprehensive restructuring of the company's indebtedness.

The company anticipates that the cash available to it during its Chapter 11 cases will likely provide sufficient liquidity to support the business during the financial restructuring process. As such, the company does not currently intend to seek debtor in-possession (DIP) financing.

Kirkland & Ellis LLP is serving as legal advisor to LINN, Lazard is serving as its financial advisor, and AlixPartners is its restructuring advisor.

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