From Houston Business Journal:

After reaching an agreement with more lenders, Houston-based Memorial Production Partners LP (Nasdaq: MEMP) announced Jan. 16 it filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The move was expected since December, when the master limited partnership first entered into a plan support agreement with holders of 50.2 percent of the partnership’s senior notes due in 2021 and 2022. That figure has since increased to about 69 percent. And on Jan. 13, the company announced it reached a definitive plan support agreement with the lenders of all of its loans under its revolving credit facility.

MEMP plans to eliminate more than $1.3 billion in debt from its balance sheet through the restructuring. Its operations and production are expected to continue as normal during the process.

The company currently is not seeking debtor-in-possession financing because it expects to have sufficient liquidity to continue its operations and meet its obligations, including paying employees, customers and vendors.

“We believe that our agreements with our noteholders and lenders and the court-supervised financial restructuring process provide for a clear and expedited path to reduce debt and position MEMP for long-term success,” William Scarff, president and CEO of the general partner of MEMP, said in a press release. “We expect our operations to continue as normal. As always, we appreciate the hard work and dedication of our employees, who continue to work safely and achieve solid operational results.”

Perella Weinberg Partners L.P. is serving as financial adviser to MEMP, and Weil, Gotshal & Manges LLP is serving as its legal counsel.

Previously, Houston-based Memorial Resource Development controlled Memorial Production Partners through the ownership of MEMP GP, the MLP’s general partner. However, Memorial Production Partners bought MEMP GP from Memorial Resources Development and became an independent company earlier this year.

Fort Worth-based Range Resources Corp. then announced plans to acquire Memorial Resource Development a in $4.4 billion deal. The deal closed on Sept. 16.

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