Penn Virginia Corp. said Sept. 12 it successfully completed its reorganization agreement and emerged from bankruptcy having reduced its long-term debt by about $1.1 billion.

In May, Penn Virginia and certain of its subsidiaries filed voluntary petitions for Chapter 11 bankruptcy in the Eastern District of Virginia, Richmond division. The company’s restructuring agreement was expected to cover 87%, or $1.03 billion, of its nearly $1.2 billion in total funded-debt obligations.

As part of its reorganization plan, Penn Virginia closed on its new senior secured revolving credit facility led by Wells Fargo with a maximum note amount of $200 million and an initial borrowing base of $128 million. In addition, the company obtained a $50 million rights offering that is backstopped and supported by certain of the company's senior unsecured noteholders.

The Radnor, Pa.-based company is focused on maintaining a core position in the Eagle Ford Shale. Currently, Penn Virginia operates 296 active horizontal Eagle Ford wells plus 36 outside-operated wells, according to the company's website.

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Penn Virginia also said Sept. 12 it established a board of directors comprised of Harry Quarls as chairman, Darin G. Holderness and Marc McCarthy. Other directors may be appointed at a later date, the company said.

The company's existing common stock has been cancelled, and its new common stock will be issued to the bondholders and certain general unsecured claimholders. Penn Virginia expects its stock will be traded over the counter pending assignment of a new ticker symbol and anticipates listing on a major exchange at a later date.

The 134-year-old company’s Chapter 11 filing came on the heels of several E&P bankruptcies in May.

Penn Virginia announced it was seeking bankruptcy protection within hours of the Linn Energy family of companies which filed for bankruptcy protection only a day earlier. On May 2, Ultra Petroleum Corp. said it filed for Chapter 11 protections with $3.9 billion in debt.

Jefferies was financial adviser and Kirkland & Ellis LLP was legal counsel for Penn Virginia's debt restructuring. Alvarez & Marsal was the company's restructuring adviser.

PJT Partners was financial adviser and Milbank, Tweed, Hadley & McCloy LLP was legal adviser to the ad hoc committee of noteholders.

Opportune LLP was financial adviser and Bracewell LLP was legal adviser to Wells Fargo (as agent) and the RBL lenders.