LGCY - Legacy Reserves: Planning For Bankruptcy
Legacy Reserves (LGCY) is planning on filing for bankruptcy, having negotiated a restructuring support agreement with its credit facility and second-lien (GSO Capital Partners) lenders. This comes as no surprise, given Legacy's high debt levels and its inability to gain a lengthy extension to its credit facility maturity.
So far, there is only a limited amount of information about the restructuring support agreement, although it appears to call for Legacy's unsecured debt and most/all of its second-lien debt to be converted into equity. Legacy also mentioned that GSO "has committed to ensure that