SOURCE: Magnum Hunter Resources

Magnum Hunter Resources

April 20, 2016 11:09 ET

Magnum Hunter Resources Corporation Receives Approval for Restructuring Plan

Delaware Bankruptcy Court Approves a "Pre-Arranged" Chapter 11 Reorganization That Significantly Deleverages Magnum Hunter's Balance Sheet and Positions the Company for Future Long-Term Growth and Ultimate Profitability in the Current Depressed Commodity Environment

IRVING, TX--(Marketwired - Apr 20, 2016) -  Magnum Hunter Resources Corporation (OTC PINK: MHRC) and certain of its wholly-owned subsidiaries (collectively, the "Company" or "Magnum Hunter") today announced that the Bankruptcy Court for the District of Delaware has confirmed Magnum Hunter's chapter 11 plan of reorganization. Confirmation of Magnum Hunter's chapter 11 plan is a critical and near-final step toward its emergence from chapter 11, which will conclude a balance sheet restructuring process that de-leverages substantially all of Magnum Hunter's pre-bankruptcy funded indebtedness and converts 100% of its post-filing debtor-in-possession ("DIP") financing into equity pursuant to a consensual debt-to-equity exchange.

Magnum Hunter filed for chapter 11 protection on December 15, 2015. Prior to commencing the chapter 11 cases, Magnum Hunter entered into a restructuring support agreement with lenders holding 75% in aggregate principal amount of its pre-bankruptcy funded debt claims, pursuant to which the lenders agreed to support Magnum Hunter's chapter 11 process and convert 100% of their debt claims to equity in the reorganized Company. The Company's plan was overwhelmingly accepted by creditors entitled to vote. Magnum Hunter anticipates that the plan will become effective and it will emerge from bankruptcy on or before May 3, 2016. The effectiveness of the plan is contingent on the Company's satisfaction of a number of conditions that are set forth in the plan and the order of the Bankruptcy Court confirming the plan. Magnum Hunter's balance sheet restructuring is the result of the Company's diligent efforts to meet the required milestones under the Restructuring Support Agreement with the goal of achieving the best possible outcome for all of the Company's constituents. Following confirmation, Magnum Hunter will work cooperatively with its constituents to emerge from bankruptcy as a stronger company.

Court filings and other information related to the restructuring proceedings are available at a website administered by the Company's claims agent, Prime Clerk, at https://cases.primeclerk.com/magnumhunter, or via telephone at 844-276-3026 (toll free) or 917-962-8497 (international).

PJT Partners LP is serving as financial advisor to Magnum Hunter, Kirkland & Ellis LLP is serving as legal counsel, and Alvarez & Marsal North America, LLC is serving as restructuring advisor. Weil, Gotshal & Manges LLP and Houlihan Lokey are serving as legal counsel and financial advisors, respectively, to an ad hoc group of holders of the Company's second lien debt in their capacity as prepetition lenders and postpetition DIP lenders. Akin Gump Strauss Hauer & Feld LLP and Centerview Partners are serving as legal counsel and financial advisors, respectively, to an ad hoc group of holders of the Company's senior unsecured notes in their capacity as prepetition lenders and postpetition DIP lenders.

About Magnum Hunter Resources Corporation

Magnum Hunter Resources Corporation is an independent energy company engaged in the acquisition, production, exploration, and development of onshore natural gas and oil properties in the United States. The Company's current operations are principally located in the Marcellus Shale and Utica Shale regions of the Appalachian Basin, located in in Ohio and West Virginia. The Company also has interests in acreage and production in Kentucky and has primarily non-operating leasehold working interests in the Williston/Bakken Shale region of North Dakota. For more information about Magnum Hunter, please visit www.mhr.energy.

Forward-Looking Statements

This press release includes "forward-looking statements." All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although Magnum Hunter believes that the expectations reflected in the forward-looking statements are reasonable, Magnum Hunter can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings made by Magnum Hunter with the Securities and Exchange Commission (SEC). Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed by Magnum Hunter with the SEC, including Magnum Hunter's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and its Quarterly Reports on Form 10-Q for the fiscal quarters ended after such fiscal year. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors." Forward-looking statements speak only as of the date of the document in which they are contained, and Magnum Hunter does not undertake any duty to update any forward-looking statements except as may be required by law.

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