Legacy Reserves Inc. is evaluating and exploring potential strategic alternatives. These alternatives include, among others, a sale or other business combination transaction, sales of assets, financing transactions, or some combination of these. Legacy is encouraging proposals from existing stakeholders and interested third parties. Legacy continues to work with the administrative agent and the other lenders under its Revolving Credit Facility to extend the maturity of the Facility.
The stock dropped as much as 56% on Thursday to 59 cents for the biggest intraday collapse in more than a decade. The announcement late Wednesday brought the Midland, Texas-based company’s 12-month decline to 85%. The shares traded close to $10 as recently as May.
Legacy has engaged Tudor Pickering & Holt L.P. and Perella Weinberg Partners L.P. as financial advisors, and Sidley Austin LLP as outside legal counsel.
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