Linn Energy LLC, reeling from the oil and gas slump, filed for bankruptcy protection in Texas with a debt-restructuring agreement that would split off Berry Petroleum Co., Bloomberg News reported yesterday. The Houston-based exploration and production company intends to keep operating during the reorganization. Linn said that it has enough cash on hand to run the business and doesn’t intend to arrange debtor-in-possession financing. The collapse in oil and gas prices forced companies to slash more than $100 billion in spending globally and eliminate more than 250,000 jobs in 2015. In February, Linn tried to buy time by exhausting a $3.6 billion credit facility. That added about $919 million to its debt load, while its Berry Petroleum unit used up a $900 million facility. Linn also hired Lazard as financial adviser and Kirkland & Ellis LLP for legal counsel. Read more.
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