Restructuring Expected to Strengthen Financial Position and Eliminate More than $1.3 Billion of Debt
Operations to Continue as Normal Across Asset Base
HOUSTON, Jan. 16, 2017 (GLOBE NEWSWIRE) — Memorial Production Partners LP (NASDAQ:MEMP) (“MEMP” or “the Partnership”) announced today that it has taken the next step to implement the financial restructuring contemplated under its previously announced Plan Support Agreements with certain of its noteholders and lenders. MEMP has voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the Southern District of Texas, Houston Division. MEMP’s operations and production are expected to continue as normal across its asset base throughout the court-supervised financial restructuring process.
As previously announced, the Plan Support Agreement with noteholders is supported by holders of approximately 69% of the Partnership’s 7.625% senior notes due 2021 and the Partnership’s 6.875% senior notes due 2022 (collectively, the “Notes”). In addition, lenders holding 100% of the loans under the Partnership’s revolving credit facility support the Partnership’s restructuring plan with a separate Plan Support Agreement. The financial restructuring is expected to eliminate more than $1.3 billion of debt from the Partnership’s balance sheet and enhance its financial flexibility.
William J. Scarff, President and Chief Executive Officer of the general partner of MEMP, said, “Today, with the support of our noteholders and lenders, we are implementing our financial restructuring plan. We believe that our agreements with our noteholders and lenders and the court-supervised financial restructuring process provide for a clear and expedited path to reduce debt and position MEMP for long-term success.”
Mr. Scarff continued, “We expect our operations to continue as normal. As always, we appreciate the hard work and dedication of our employees, who continue to work safely and achieve solid operational results.”
MEMP expects to have sufficient liquidity to continue its operations and meet its obligations in the ordinary course. As such, the Partnership is not seeking debtor-in-possession (DIP) financing at this time.
MEMP has filed various routine first-day motions with the Bankruptcy Court to support its operations and for authority to pay certain prepetition obligations during the court-supervised process, including a motion requesting authority to pay prepetition employee wages and benefits. The Partnership expects to receive Bankruptcy Court approval for the requests in its motions. The Partnership intends to meet its postpetition customer, vendor and employee obligations in full in the ordinary course and will continue to adhere to all applicable regulatory and environmental standards.
Additional information is available on MEMP’s website at www.memorialpp.com/restructuring or by calling MEMP’s Restructuring Hotline, toll-free in the U.S., at (877) 773-8184. In addition, court filings and other documents related to the reorganization proceedings are available on a separate website administered by MEMP’s claims agent, Rust Omni, at www.omnimgt.com/MemorialProductionPartners.
Perella Weinberg Partners L.P. is serving as financial advisor to MEMP and Weil, Gotshal & Manges LLP is serving as its legal counsel.
About Memorial Production Partners LP
Memorial Production Partners LP is a publicly traded partnership engaged in the acquisition, production and development of oil and natural gas properties in the United States. MEMP’s properties consist of mature, legacy oil and natural gas fields. MEMP is headquartered in Houston, Texas. For more information, visit www.memorialpp.com.