Lonestar Resources US Inc. (the “Company” or “Lonestar”) has announced that effective November 30, 2020, the Company has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy, having satisfied all of the conditions to the effectiveness of its plan of reorganization (the “Plan”). Through its financial restructuring, Lonestar has eliminated approximately US$390 million in aggregate debt obligations and preferred equity interests.
In addition, Lonestar has entered into a new US$225 million first-out senior secured revolving credit facility (“Revolver”) and a US$60 million second-out senior secured term loan credit facility by amending and restating the Company’s existing credit agreement. At closing, Lonestar has US$210 million outstanding on the revolver and a post-emergence cash balance of approximately US$20.7 million.
Latham & Watkins LLP represented Lonestar Resources US Inc. in its successful restructuring led by New York restructuring and special situations partner David Hammerman and counsel Annemarie Reilly, and Houston corporate partner David Miller. The restructuring and special situations team was assisted by partner Keith Simon, with New York associates Madeleine Parish, Evan Schladow, Jon Weichselbaum, Alistair Fatheazam, and Randy Weber-Levine. The corporate team included Houston associates Kevin Richardson, Eric Schoppe, Madeleine Neet and Ricky Alvarado. Advice was also provided on finance matters by Houston partner Pamela Kellet, with Houston associate Bryce Kaufman; on tax matters by Houston partners Tim Fenn and Jim Cole, with Houston associate Jared Grimley; and on benefits matters by Washington, D.C. partner Adam Kestenbaum.