Ascent Resources Marcellus Holdings, LLC, a division of the natural gas company owned by Energy Minerals Group, filed for bankruptcy protection yesterday, after reaching a deal with senior lenders on a sale or reorganization to preserve the business, WSJ Pro Bankruptcy reported. The bankruptcy filing includes a pre-packaged turnaround plan that garnered enough support from creditors to move swiftly through court. Parent Ascent Resources LLC, the Appalachian oil-and-gas explorer founded by late oilman Aubrey McClendon, isn’t part of the bankruptcy filing. Ascent Marcellus tested the market for buyers last year, but agreed with major creditors to pursue a debt-for-equity swap under chapter 11 bankruptcy protection instead, court papers said. Voting has already begun on a reorganizing bankruptcy exit plan that Ascent believes will ease it out of chapter 11 around the middle of March with a slimmer balance sheet. Ascent Marcellus focuses on natural gas and oil properties in the Marcellus Shale, but reined in drilling in 2015 due to a decline in prices and its distressed financial condition, court papers say. The Marcellus unit has a sister business called Ascent Resources Utica Holdings LLC, which operates in the Utica Shale basin in Ohio. The companies share common ownership, but the Utica business isn’t part of the bankruptcy case. Ascent Marcellus lost $677 million in 2016 followed by a loss of $98 million last year.
