Magnum Hunter Resources Corp. (OTC PINK: MHRC) and certain of its wholly-owned subsidiaries emerged from Chapter 11 bankruptcy on Monday, May 9, just short of five months after its December 15, 2015, filing.
The Irving, TX-based company completed a balance-sheet restructuring that de-leveraged substantially all of Magnum Hunter's $1 billion of pre-bankruptcy funded indebtedness and converted 100% of its post-filing debtor-in-possession (DIP) financing into equity pursuant to a consensual debt-to-equity exchange. The company noted that it has reached a resolution of all claims and controversies with Eureka Midstream Holdings LLC and certain of its affiliates.
Currently the new board of directors is engaged in a search for a permanent CEO. The company's founder and former CEO, Gary Evans, has left Magnum Hunter Resources and started a new venture. Evans' new company, Energy Hunter Resources Inc. is "close to buying two tracts of land in the oil-rich Permian Basin and Eagle Ford fields of Texas," Evans told Reuters on Tuesday. Evans declined to divulge the size of the tracts, but told Reuters "about 40 wells" could be drilled in the space at a cost of about $6 million each.
In the interim, Joseph C. Daches, current CFO, and Rick S. Farrell, current senior vice president of business development and land, will serve as co-CEOs of Magnum Hunter Resources.