Cases & Deals

ERG Intermediate Holdings confirms Chapter 11 reorganization plan

Client(s) ERG Resources, LLC and ERG Operating Company, LLC

Jones Day advised ERG Intermediate Holdings, LLC and certain of its affiliates ("ERG") in connection with the confirmation and implementation of ERG's chapter 11 plan of reorganization. ERG is a privately held oil and gas company with operations in Texas and California. With a need to restructure more than $400 million in debt, ERG filed for bankruptcy protection in the Northern District of Texas on April 30, 2015. Jones Day assisted in the negotiation, solicitation and confirmation of a plan of reorganization that obtained $150 million in new financing for ERG's operations. These funds will be used to expand ERG's operations over the next several years in anticipation of a sale to benefit creditors. The chapter 11 plan also transferred various assets for the benefit of unsecured creditors. The plan was confirmed on October 30, 2015 and went effective on November 12, 2015. ERG's successful emergence from bankruptcy is one of the first and few successful reorganizations amidst challenging economic conditions in the oil and gas industry.