LINN ENERGY BACKSTOP AGREEMENT APPROVAL SOUGHT
LINN Energy filed with the U.S. Bankruptcy Court a motion to enter into backstop agreement and pay related fees and expenses. The motion explains, "The terms of the $530 million fully backstopped, new money investment are documented in the backstop commitment letter entered into on October 7, 2016 by and between LINN Energy, LLC and the Noteholders….The LINN Restructuring Support Agreement and the Backstop Agreement are the culmination of months of hard fought, arms'-length negotiations between the Debtors, multiple third party potential new money investors, the Linn first lien lenders, the Ad Hoc Group of Second Lien Noteholders, and the Ad Hoc Group of Unsecured Noteholders. As contemplated in the Backstop Agreement and the chapter 11 plan of reorganization filed on the date hereof, the new money investment will be raised pursuant to two rights offerings (the 'Rights Offerings') of new common stock and/or limited liability company interests (the 'New Common Stock') in a new Delaware entity (the 'Reorganized Company') to be funded upon the LINN Debtors' emergence from chapter 11. The new money investment represents the cornerstone for a comprehensive restructuring that will deleverage the LINN Debtors' balance sheet by over $5.7 billion and will provide the liquidity necessary for the LINN Debtors to emerge as a stronger enterprise poised for future growth. Obtaining approval of the Backstop Agreement, and the authority to satisfy the obligations thereunder, is critical to the success of the LINN Debtors' restructuring and is required for the Commitment Parties' agreement to backstop the company's hard-fought restructuring." The Court scheduled a November 15, 2016 hearing on the motion.