Titan Energy’s Restructuring Support Agreement


Skadden, Arps, Slate, Meagher & Flom, LLP, Alvarez & Marsal, Perella Weinberg Partners LP, Paul Hastings LLP, and Shearman & Sterling, LLP advised Titan Energy on the deal.

Titan Energy, LLC and certain of its subsidiaries have entered into a comprehensive restructuring support agreement (the “RSA”) with key stakeholders, including the agent under the Company’s first lien credit facility (the “First Lien Agent”), holders of a majority of its first lien claims (collectively, the “Consenting First Lien Lenders”), holders of 100% of its second lien claims (collectively, the “Second Lien Lenders”), and certain holders representing approximately 25% of the outstanding equity of the Company.

The RSA contemplates a sale of substantially all of the Company’s remaining assets, including its oil-and-gas properties in the Eagle Ford Shale, and provides for the subsequent dissolution and winding up of the Company.

The RSA also contemplates soliciting consents and agreements from holders of record of the Company’s common shares as of the May 21, 2020 record date.

The sale of the Company’s Eagle Ford Shale position, which represents a sale of substantially all of its remaining assets, is expected to generate approximately $8.5 million in net proceeds to Titan. The RSA provides for the Consent Payment to Consenting Shareholders despite the more than $400 million of secured debt currently on Titan’s balance sheet.

Titan Energy, LLC (OTC PINK:TTEN) owns and operates as an oil and gas exploration company. The Company focuses the development, exploration, and production of oil and gas.

The Skadden team advising Titan Energy included Corporate Restructuring partner Ron Meisler (Picture; Chicago) and counsel Carl Tullson(Wilmington), M&A partner Frank Bayouth (Houston), Capital Markets partner Michelle Gasaway (Los Angeles), Litigation partner Albert Hogan III (Chicago), Corporate associates Robert Goldstein (Los Angeles) and Agnes Aniol(Los Angeles), and Corporate Restructuring associates Steven Walsh (Wilmington) and Jackie Dakin (Wilmington).

Involved fees earner: Agnes Aniol – Skadden Arps Slate Meager & Flom; Frank Bayouth – Skadden Arps Slate Meager & Flom; Jackie Dakin – Skadden Arps Slate Meager & Flom; Michelle Gasaway – Skadden Arps Slate Meager & Flom; Robert Goldstein – Skadden Arps Slate Meager & Flom; Albert Hogan III – Skadden Arps Slate Meager & Flom; Ron Meisler – Skadden Arps Slate Meager & Flom; Carl Tullson – Skadden Arps Slate Meager & Flom; Steven Walsh – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: Titan Energy, LLC;

Author: Ambrogio Visconti