Creditors helping Linn Energy LLC raise $530 million in fresh capital to fund its restructuring stand to collect more than $20 million in fees for their efforts, Wall Street Journal Pro Bankruptcy reported yesterday. Bankruptcy Judge David R. Jones on Monday signed off on a deal between the oil and gas explorer and the bondholders that have agreed to buy unsold shares in a future sale of $530 million in new stock in the restructured company. Linn previously said in court papers that the fees were necessary to secure the commitments from certain junior bondholders and unsecured bondholders to backstop the stock sales. The success of its restructuring and future viability would be jeopardized if this agreement fell apart, Linn warned. Linn sought chapter 11 protection in May, one of dozens of oil and gas explorers to turn to bankruptcy as commodities prices took a nosedive. Through its restructuring, the Houston company is hoping to cut more than $5.7 billion off a debt load that tops $8 billion. Read more. (Subscription required.)
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