Davis Polk Works with Lenders in Connection with Ascent Resources Marcellus Restructuring
2/9/2018

Davis Polk is advising the first-lien agent working with a group of lenders holding more than 65% of the combined approximately $1.1 billion in prepetition first-lien and second-lien senior secured debt of Ascent Resources Marcellus Holdings, LLC and certain of its subsidiaries in the Ascent’s chapter 11 restructuring. On September 5, 2017, the lender group and the agent entered into a Restructuring Support Agreement with Ascent for a comprehensive restructuring of Ascent to be implemented through a prepackaged chapter 11 plan of reorganization. Upon consummation of the plan, among other things, the lenders will receive equity interests in the reorganized company and warrant packages, with the first-lien lenders also receiving $150 million in take-back debt. On February 6, 2018, Ascent filed the prepackaged plan together with its voluntary chapter 11 petitions in the Bankruptcy Court for the District of Delaware. The prepackaged plan enjoys the support of the significant majority of prepetition first and second-lien lenders. 

Ascent is an independent energy company focused on operating natural gas and oil properties in the Marcellus Shale basin in the eastern United States.

The Davis Polk restructuring team includes partner Damian S. Schaible and associates Natasha Tsiouris, Stephen D. Piraino and Dylan A. Consla. Partner Stephen Salmon and associate Jeffrey C. Lau provided corporate advice. Partner Monica Holland provided credit advice. Partner Rachel D. Kleinberg provided tax advice. Members of the Davis Polk team are based in the New York and Northern California offices.