Another North Texas energy firm files Chapter 11

Count Irving-based Magnum Hunter Resources Corp. as another oil and gas firm filing for bankruptcy as low oil and nautral gas prices reverberate throughout the industry.

The company said Tuesday it has the support of a majority of its lenders for a turnaround plan, which calls for a $200 million loan to keep Magnum Hunter operating as it goes through bankruptcy. The loan will be converted to equity for the newly reorganized company that is expected to emerge in April 2016, according to a news release from the company.

In the filing, Magnum listed debts of more than $1.1 billion. Magnum has most of its assets in Marcellus and Utica shale plays.

“With the unified support of our various lenders, we anticipate this restructuring will be a success and unprecedented in our industry,” said Gary C. Evans, chairman and CEO of Magnum Hunter. “I believe this restructuring will position Magnum Hunter as a market leader in the upstream sector with an ideal capital structure to capitalize on the large number of opportunities anticipated in our industry due to the precipitous commodity cycle downturn affecting the industry as a whole.”

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PJT Partners LP is serving as financial advisor to Magnum Hunter, Kirkland & Ellis LLP is serving as legal counsel, and Alvarez & Marsal North America, LLC is serving as restructuring advisor. Weil, Gotshal & Manges LLP and Houlihan Lokey are serving as legal counsel and financial advisors, respectively, to an ad hoc group of holders of the company’s first lien debt and second lien debt, in their capacity as prepetition lenders and postpetition DIP lenders. Akin Gump Strauss Hauer & Feld LLP and Centerview Partners are serving as legal counsel and financial advisors, respectively, to an ad hoc group of holders of the company’s first lien debt and senior unsecured notes, in their capacity as prepetition lenders and postpetition DIP lenders.

Eureka Hunter Holdings LLC and its units aren’t part of Tuesday’s Chapter 11 case.

The case is In re Magnum Hunter Resources Corp., 15-12533, U.S. Bankruptcy Court, District Of Delaware (Wilmington).