Atlas Resource Partners entered into a restructuring support agreement with 100% of its revolving credit facility lenders, 100% of its second lien lenders and approximately 80% of its senior noteholders.

The lenders include Wells Fargo Bank, Wilmington Trust and U.S. Bank, among others.

The agreement, if completed, will immediately reduce the partnership’s debt by approximately $900 million and interest expense by $80 million per year.

The debt reduction is accomplished through the conversion of the $668 million of the partnership’s outstanding senior notes into 90% of the common equity of the restructured company upon consummation of the restructuring plan and from the proceeds of the sale of the partnership’s natural gas and oil hedge positions to make repayments under its existing revolving credit facility.

Under the RSA, the cash interest expense payable on the second lien term loan will be immediately reduced to 2% upon the commencement of the restructuring proceedings. The second lien term loan holders will also receive 10% of the common equity of the emerged company. In consideration of its agreement to provide administrative management, operating and other services following the restructuring, a subsidiary of Atlas Energy Group, the general partner of the partnership, will receive a 2% economic interest in the restructured company.

The partnership expects to emerge from the execution of the restructuring plan as Titan Energy, which will be classified as a corporation for U.S. federal income tax purposes, and will be publicly traded on an exchange or quoted on an over-the counter market.

Titan Energy will be led by Ed Cohen, executive chairman; Jonathan Cohen, executive vice chairman; Daniel Herz, chief executive officer; Mark Schumacher, president and Jeffrey Slotterback, chief financial officer.