Arsenal Energy Holdings LLC

The debtor and its affiliates are engaged in the acquisition and development of natural gas resources in the Appalachian Basin, holding one of the largest acreage positions in West Virginia.  The debtor commenced bankruptcy as part of a comprehensive recapitalization transaction that significantly reduced the company’s debt while leaving operations unaffected and trade creditors unimpaired. The debtor’s pre-packaged plan of reorganization, which converted subordinated notes totaling approximately $861 million into equity and provided the company with access to an additional $35 million in liquidity, was confirmed and went effective just ten days after the petition date. Young Conaway, along with Simpson Thacher & Bartlett LLP, led the debtor through this novel chapter 11 filing, which was the first of its kind to be approved in the Bankruptcy Court for the District of Delaware.