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Magnum Hunter Files for Bankruptcy as Gas Hits 14-Year Lows

  • Majority of lenders agree to support restructuring plan
  • CEO sees chance to capitalize on energy price downturn
Updated on

Magnum Hunter Resources Corp., an oil and gas explorer once heady with spending amid the U.S. shale boom, filed for bankruptcy as its heavy debt load was exacerbated by the glut in cheap energy.

The company said Tuesday that it has the support of a majority of its lenders for a turnaround plan. Holders of 75 percent of the company’s debt have agreed to support the restructuring, which calls for a $200 million loan to keep Magnum Hunter operating in bankruptcy, according to a statement.