The company has initially elected an aggregate commitment of $150 million and will have no outstanding borrowings upon emergence.
“The substantial capital commitment from our bank group highlights the operating momentum achieved by our team over the past nine months and the significant progress made to position the company to enhance the value of our assets. Our ongoing optimization initiatives have yielded strong well results that continue to outpace expectations and have already effected substantial reductions to our cost structure,” said egarding the new facility,” said CEO Carl Giesler.
“We recognize the persistent efforts of our team and our bank group in successfully securing this liquidity for the company, particularly given the current challenging financing environment for small-cap E&P companies generally and especially those emerging from restructuring. We look forward to working with our new syndicate going-forward.”
The company satisfied all of the conditions to effectiveness under the its prepackaged Chapter 11 plan previously confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on May 6, 2019. The plan fully equitizes the company’s outstanding prepetition funded debt, authorizes the incurrence of an exit facility, and fully satisfies all trade, customer, employee, royalty, working, and other mineral interest claims without interruption in the ordinary course of business. The Company emerges stronger, well-capitalized, and strategically positioned to maximize the value of its asset portfolio.
Jones Energy is an independent oil and natural gas company engaged in the exploration and development of oil and natural gas properties in the Anadarko basin of Oklahoma and Texas.