Oil and gas producer Magnum Hunter Resources Corp and its affiliates filed for chapter 11 protection yesterday to carry out a debt-cutting plan as a prolonged slump in oil prices has depleted the company's cash, Reuters reported. The company entered into a restructuring agreement that will convert its funded debt into equity, substantially reducing its more than $1 billion in debt, according to a company statement. To fund its operations during its bankruptcy, the company's lenders agreed to provide up to $200 million in financing, which will also convert into equity when Magnum Hunter emerges from bankruptcy. Magnum Hunter ranks among the biggest energy producers to file for bankruptcy this year, joining Samson Resources Corp., Sabine Oil & Gas Corp., Quicksilver Resources Inc and Energy & Exploration Partners Inc.
