Legacy Reserves committee doesn’t see need for exclusivity extension

By Caroline Salls

Pittsburgh, Oct. 11 – Legacy Reserves Inc.’s official committee of unsecured creditors said in an objection filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas that the company does not have sufficient groups to merit its proposed exclusivity extension.

The committee said Legacy’s plan of reorganization will be confirmed before the expiration of the current exclusive plan-filing period.

According to the objection, Legacy and GSO Capital Partners LP have claimed for the last three months that the Chapter 11 case must proceed on a fast track so the company does not lose the support of an informal group of noteholders, Legacy’s RBL lenders and lender GSO.

“Now, without any evidence, and contrary to the debtors and GSO’s case-theme, the debtors request an extension of the exclusive period ‘out of an abundance of caution,’” the objection said.

In addition, the committee said Legacy should not be allowed to avoid the filing of competing plans because of the risk that its proposed plan may not be confirmed.

“The debtors fail to articulate why they should be the only party given the opportunity to file a plan after the exclusive periods end,” the committee said. “If the debtors’ plan is rejected, the committee, or any party in interest, should have the option to file a plan.”

Legacy Reserves is a Midland, Tex.-based company focused on the acquisition and development of oil and natural gas properties. The company filed bankruptcy on June 18 under Chapter 11 case number 19-33395.

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