Rex Energy Corp. has agreed to run a dual-track chapter 11 that will result in either a sale or reorganization of the business, WSJ Pro Bankruptcy reported. The State College, Pa.-based natural-gas fracking company’s senior lenders, owed $261.3 million, would take control of the business upon its emergence from bankruptcy if a sale process is unsuccessful, according to papers filed on Friday in the U.S. Bankruptcy Court in Wilmington, Del. These lenders have agreed to provide Rex Energy with $100 million in new money to fund the chapter 11. As part of the deal, senior lenders’ existing debt will be “rolled up” and given top priority for repayment under the chapter 11 financing, court papers say. The bankruptcy financing must be approved by a judge.
