Simpson Thacher represented Arsenal Resources in its chapter 11 restructuring, which is expected to go effective in the first week of January 2020, after the Bankruptcy Court for the District of Delaware confirmed the Company’s pre-packaged plan of reorganization at a confirmation hearing on December 19. The plan provides that Arsenal’s two largest creditors will exchange over $360 million in outstanding secured debt for equity interests in the reorganized company and will infuse the company with $100 million in new capital. In addition, the Company will eliminate all long-term debt except for a partially drawn exit facility with a borrowing base initially set at $130 million.
In connection with the restructuring, the Company also successfully negotiated new agreements with all of its providers of gas gathering and transportation services and has eliminated the minimum volume commitments under the new gathering agreements.
Arsenal Resources is an independent exploration and production company headquartered in Pittsburgh, Pennsylvania that is engaged in the acquisition, exploration and development of natural gas in the Appalachian Basin.
The Simpson Thacher team included: Kathrine McLendon, Nicholas Baker, Daniel Biller, Edward Linden, Jamie Fell and Chase Bentley (Restructuring); Erland Modesto, Brandan Still and Michael Paparozzi (Credit); Christopher May, Jim Cross, Brad Honeycutt, Nate Bascom and Collin Hunt (M&A); Brian Rosenzweig, Matt Hart and Daniel Lewis (Capital Markets); John Creed and Jasmine Hay (Tax); Larry Moss and Pasco Struhs (ECEB); and Elisa Alcabes (Insurance).