Vanguard Natural Resources, Inc.’s Restructuring


Davis Polk advised an ad hoc group of holders of 75% of the second-lien secured notes of Vanguard Natural Resources, Inc. in connection with Vanguard’s comprehensive balance sheet restructuring and chapter 11 bankruptcy case in the Bankruptcy Court for the Southern District of Texas.

Following the March 31, 2019 chapter 11 filing, the ad hoc group negotiated and agreed to a plan support agreement with the company and its first-lien lenders. The plan of reorganization was confirmed on July 9, 2019, and Vanguard emerged from chapter 11 on July 16, 2019 as Grizzly Energy, LLC. Under the confirmed plan, Vanguard’s second-lien noteholders collectively received senior preferred equity with a liquidation preference of $7 million and 15% of the new common stock in Grizzly Energy.

Grizzly Energy, LLC is an independent oil and natural gas exploration and production company, focused on the development of onshore properties in the Rockies, Permian and United States Midcontinent.

Porter Hedges LLP served as co-counsel and Miller Buckfire & Co. served as financial adviser to the ad hoc group.

The Davis Polk restructuring team included partner Brian M. Resnick (Picture) and associates Benjamin M. Schak and Zachary Levine. The litigation team included partner Elliot Moskowitz and associate Cristina M. Rincon. The corporate team included partner Stephen Salmon. The tax team included partners Lucy W. Farr and Patrick E. Sigmon and associate Dao Fu. Members of the Davis Polk team are based in the New York and Northern California offices.

Involved fees earner: Lucy Farr – Davis Polk & Wardwell; Dao Fu – Davis Polk & Wardwell; Zachary Levine – Davis Polk & Wardwell; Elliot Moskowitz – Davis Polk & Wardwell; Brian Resnick – Davis Polk & Wardwell; Cristina Rincon – Davis Polk & Wardwell; Stephen Salmon – Davis Polk & Wardwell; Benjamin Schak – Davis Polk & Wardwell; Patrick Sigmon – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: ad hoc group of holders of the second-lien secured notes of Vanguard Natural Resources, Inc.;

Author: Ambrogio Visconti