The publicly traded company entered chapter 11 in U.S. Bankruptcy Court in Wilmington, Del., with a restructuring deal that has garnered the support of roughly 75% of debtholders. The deal hands control of Magnum Hunter to its lenders and bondholders in exchange for forgiveness of roughly $1 billion in debt they are owed. The consenting lenders have also agreed to backstop the company’s restructuring with $200 million in bankruptcy financing that would also be forgiven in conjunction with the debt-for-equity swap. The company said the deal likely will include a “significant recovery in cash” for trade creditors and vendors as well. Although Magnum Hunter hasn’t executed a fully prepackaged bankruptcy case, the company expects that it will be able to complete this deal quickly in bankruptcy and exit court protection by April. The work still to be done in bankruptcy includes formally polling creditors on its restructuring plan and […]