Oil and gas explorer Magnum Hunter Resources Corp. struck a deal in court yesterday to resolve the first of several requests to exit burdensome pipeline agreements as part of its restructuring, Dow Jones Daily Bankruptcy Review reported today. Instead of arguing for the right to tear up pipeline agreements with Texas Gas Transmission LLC, which committed to expanding a pipeline system that stretches from Louisiana to Ohio, lawyers for both sides announced a deal that gives Magnum Hunter an out. Texas Gas lawyer John Melko told the U.S. Bankruptcy Court in Wilmington, Del., that in return for allowing Magnum Hunter to reject the pipeline agreements, Texas Gas would get a $15 million unsecured claim against Magnum Hunter in its bankruptcy case. Magnum Hunter's pending repayment plan allows unsecured creditors to choose between receiving cash or equity. Read more. (Subscription required.)
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