Commences Voluntary Pre-Packaged Chapter 11 to Strengthen the Company's Balance Sheet and Reduce Debt; No Impairment to Vendors or Royalty Holders
FORT WORTH, Texas, Oct. 12, 2020 /PRNewswire/ -- MD America Energy, LLC (the "Company" or "MD America"), a Texas-based oil and gas operating company, today announced that it has entered into a fully-backed restructuring support agreement (the "Agreement"). To facilitate the Agreement and implement a comprehensive balance sheet restructuring and pre-packaged Plan of Reorganization, the Company also filed a proceeding under Chapter 11 of the United States Bankruptcy Code in the Southern District of Texas Houston Division and has proposed a confirmation schedule that would result in emerging from bankruptcy in 45-60 days.
The Company has ample liquidity to support operations during this time and business operations will continue in the ordinary course uninterrupted.
"The actions we are taking today will allow us to reduce our debt and strengthen our balance sheet, enabling us to continue to succeed in the extremely competitive oil and gas market in which we do business," said Scott Avila, Chief Restructuring Officer of MD America. "We are thankful to have the unanimous support of our lenders, and we expect to move quickly through this financial restructuring process."
Subject to Court approval, the Company intends to pay vendors, suppliers, and other third-party contractors for goods and services provided prior to the filing date in the ordinary course of business.
Robert Warshauer, Chairman, MD America Board of Directors, commented, "I want to thank MD America's team members, royalty holders, suppliers and strategic business partners who remain supportive as we focus on positioning the Company for long-term success. We recognize this has been a challenging time on numerous fronts, and we look forward to MD America emerging from this process a financially stronger and more competitive business."
Court filings as well as other information related to the restructuring are available at https://cases.primeclerk.com/MDAmerica or by calling Toll Free: (877) 464-6899 / International: (347) 817-4095 or via email MDAmericaInfo@primeclerk.com.
The Company is being advised by the law firm of Porter Hedges LLP, and Paladin, as Chief Restructuring Officer and financial advisor.
About MD America
MD America is a Texas based oil and gas operating company engaged in the acquisition, development, exploitation and production of crude oil and natural gas properties in East Texas. Assets currently consist of approximately 71,000 net acres with over 300 drilled and operated wells.
Jennifer E. Mercer
Paladin for MD America Energy, LLC
SOURCE MD America Energy, LLC