Arsenal Energy Holdings pre-packaged plan deemed effective Feb. 14

By Caroline Salls

Pittsburgh, Feb. 14 – Arsenal Energy Holdings LLC emerged from Chapter 11, as its pre-packaged plan of reorganization took effect on Thursday, according to a news release.

The plan, which was confirmed on Wednesday by the U.S. Bankruptcy Court for the District of Delaware, implemented a debt-for-equity exchange under which $861 million of subordinated notes were converted into equity.

General unsecured claims and other secured claims will be paid in full in cash, paid or disputed in the ordinary course of business as if the Chapter 11 case had not been filed.

Holders of existing Arsenal Energy common equity interests will receive a share of 100% of new class B common units or class C common units.

Other existing equity interests will be cancelled, and holders will receive no distribution.

“The company is pleased that we have consummated this transaction, completing the recapitalization that began in December,” president and chief executive officer Jon Farmer said in the release.

“We look forward to working with our employees, vendors and customers toward a successful future.”

Arsenal is an independent exploration and production company based in Pittsburgh. The company filed bankruptcy on Feb. 4 under Chapter 11 case number 19-10226.

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