Fort Worth-based Lonestar Resources US Inc. plans to wipe $390 million in debt with an upcoming bankruptcy filing and a restructuring agreement it has reached with its largest stakeholders, the oil producer announced Tuesday.
Lonestar is turning to a team of lawyers from Latham & Watkins and Hunton Andrews Kurth to guide it through the restructuring deal and impending bankruptcy.
A group of lawyers outside of Texas are handling the bankruptcy issues from Latham, but the bankruptcy team includes a number of lawyers from the firm’s Houston office: corporate lawyers David Miller, Lauren Anderson, Kevin Richardson, Eric Schoppe, Madeleine Neet and Ricky Alvarado; finance lawyers Pamela Kellet and Bryce Kaufman; and tax lawyers Tim Fenn, Jim Cole, Jared Grimley and Chelsea Muñoz-Patchen.
The team from HuntonAK includes Tad Davidson, Ashley Harper and Philip Guffy from the firm’s Houston office.
Like most of Lonestar’s industry peers that have recently entered the bankruptcy process, Lonestar said in an SEC filing that it will file for bankruptcy protection in Houston federal court. The company said it will do so by the end of the month.
The venue in the Southern District of Texas has been popular with Lonestar’s industry peers that have also filed for bankruptcy in recent months — including other bankruptcies that Latham and HuntonAK have teamed up on.
Other recent bankruptcies the two firms joined forces on include the Hi-Crush bankruptcy filing from July and Sable Permian Resources’ June filing.
For more details about the restructuring agreement, see this report by our partners at the Dallas Business Journal.