Davis Polk advised an ad hoc group of holders of the unsecured notes and the first-lien notes of Jones Energy, Inc. in connection with Jones Energy’s comprehensive balance sheet restructuring and chapter 11 bankruptcy case in the Bankruptcy Court for the Southern District of Texas.
Before the April 15, 2019 chapter 11 filing, members of the ad hoc group concluded over a year of negotiations by agreeing to a restructuring support agreement with the company and an ad hoc group of first-lien noteholders. The plan of reorganization was confirmed without objection on May 6, 2019, and Jones Energy emerged from chapter 11 on May 17, 2019. Under the confirmed plan, members of the ad hoc group collectively received approximately 39% of equity in reorganized Jones Energy, warrants for an additional 13% of equity and rights to participate in the selection of three out of seven directors.
Jones Energy is an independent oil and natural gas exploration and production company focused on the development of properties in the United States mid-continent. Its operations are currently focused on oil fields in the Western Anadarko Basin and the SCOOP/STACK or Merge region in Texas and Oklahoma.
The ad hoc group’s steering committee consisted of AIG Asset Management, Avenue Capital Management, Brookfield Asset Management, Contrarian Capital Management, Deutsche Bank, Glendon Capital Management, Nokota Capital Management, Nomura Corporate Research and Asset Management, and Whitebox Advisors.
The Davis Polk restructuring team included partner Brian M. Resnick, counsel Christian Fischer and associates Benjamin M. Schak and Omer Netzer. The tax team included partner Michael Mollerus. The equity derivatives team included partner John M. Brandow. The capital markets team included partner Derek Dostal. The mergers and acquisitions team included partner Brian Wolfe. The executive compensation team included partner Edmond T. FitzGerald. The real estate team included counsel Lawrence R. Plotkin. All members of the Davis Polk team are based in the New York office.
Houlihan Lokey Capital, Inc. served as financial adviser to the ad hoc group.