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Linn Energy Files for Bankruptcy

Linn said Wednesday that it expects available cash during the bankruptcy process will be sufficient...

Oil and gas producer Linn Energy LLC filed for chapter 11 bankruptcy Wednesday after reaching a deal with lenders to restructure its $8.3 billion debt load and obtain $2.2 billion in fresh financing.

The latest producer to seek court protection amid the commodities rout, Linn Energy said the holders of more than 66% of its credit facility have agreed to the “broad terms” of a debt restructuring but didn’t provide further details. The lenders also agreed to let Linn Energy spend the cash securing their debt, known as cash collateral, and to help fund a new $2.2 billion term loan.

Linn Energy said access to the cash will allow it to continue normal operations without lining up new bankruptcy financing. However, the company still requires permission from the U.S. Bankruptcy Court in Victoria, Texas, to begin spending.

LinnCo LLC, a publicly traded affiliate, filed for bankruptcy alongside Linn Energy Wednesday.

LinnCo was created to help Linn Energy raise additional equity capital and is taxed as a corporation, rather than as a master limited partnership like Linn Energy.

Now that Linn Energy is...


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