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Jones Energy, Inc. Files for Chapter 11 Protection


April 15, 2019 Globe Newswire

AUSTIN, Texas, April 15, 2019 (GLOBE NEWSWIRE) — Jones Energy, Inc. (OTCQX: JONE) (“Jones Energy” or the “Company”) today announced that the Company, consistent with its prior announcement on April 3, 2019 regarding the Company’s entry into a comprehensive Restructuring Support Agreement with its First Lien and Unsecured Noteholders, voluntarily filed petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division (the “Court”).

On April 14, 2019, the Company filed a pre-packaged chapter 11 plan of reorganization (the “Plan”), which if approved, will fully equitize the Company’s outstanding prepetition funded debt, authorize incurrence of a fully committed exit facility, and satisfy all trade, customer, employee, and royalty claims in full in the ordinary course of business and without change or interruption to its normal payments process.

On April 15, 2019, the Court entered orders approving all of the Company’s requested “first day” relief, which will allow the Company to maintain its operations as usual throughout the restructuring process. Included in these “first day” orders are authorizations on a final basis for the Company to continue to pay on a normal-course basis employee wages and honor existing employee benefit programs, pay taxes, and remit royalties to mineral owners under the terms of the applicable agreements.

The Court also entered final orders giving the Company authority to pay on a normal-course basis expenses associated with its operations and drilling and completion activities, as well as costs associated with gathering, processing, transportation, marketing, and those related to joint interest billing for non-operated properties. Obtaining this relief on a final basis sends a strong message that Jones Energy will continue to operate in the normal course and its business operations will not be disrupted by the restructuring process.

As previously announced, on April 3, 2019, Jones Energy commenced the solicitation of votes to accept or reject the Plan. As of the filing, the Company has received votes from holders of approximately 92% in principal of the First Lien Notes and approximately 83% in principal of the Unsecured Notes, all of whom voted to accept the Plan. As a result, Jones Energy has sufficient acceptances to carry two of the three voting classes under the Plan and, therefore, expects to meet the requirements for confirmation of the Plan.

Mr. Carl Giesler, Director and Chief Executive Officer, commented, “The financial restructuring that we announced today is necessary to attain a capital structure suitable to optimize the value of the Company’s assets and execute on its future business strategy. We are now focused on expediting an efficient in-court restructuring, maintaining operational continuity and momentum, and upholding our obligations – including that of timely payment – to our employees and vital vendors and stakeholders.”

With overwhelming stakeholder support for the Plan, the Court approved an expedited chapter 11 timeline. The Court has set a deadline to vote to accept the Plan on May 1, 2019, by 4 p.m. CT. The Company expects to emerge from bankruptcy no later than fourteen days following confirmation of the Plan.

Court filings and other information related to these chapter 11 cases are available at https://dm.epiq11.com/JonesEnergy, which is a website administered by the Company’s proposed claims agent, Epiq Corporate Restructuring, LLC. The Company has also set up a toll-free hotline to answer employee, vendor, investor and royalty owner questions, which is available Monday through Friday, 8 a.m. to 6 p.m. CT at 877-330-3471 (internationally at 503‑597-5602). Parties may obtain electronic notification of court filings through the Epiq website or may register for email notices by completing the Court’s registration form that can be accessed at: http://www.txs.uscourts.gov/sites/txs/files/CRECFform.pdf

Kirkland & Ellis LLP is serving as legal counsel, and Evercore Group, LLC is acting as financial advisor to Jones Energy. Alvarez & Marsal North America, LLC is the Company’s restructuring advisor.

About Jones Energy, Inc.

Jones Energy, Inc. is an independent oil and natural gas company engaged in the exploration and development of oil and natural gas properties in the Anadarko basin of Oklahoma and Texas. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.



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