The pure play Mid-continent energy company has entered into a restricting support agreement with its largest creditor and shareholder.

Gastar Exploration Inc., a pure play Mid-Continent independent energy company, has entered into a restructuring support agreement (RSA) with Ares Management LLC, the company’s largest funded-debt creditor and shareholder, Gastar announced Oct. 26. 

After Gastar’s failed efforts to repay or refinance debt or sell the company, it decided to file Chapter 11 bankruptcy. The restructuring will eliminate more than $300 million of the company’s debt and will provide $100 million in new, committed financing to fund the Gastar’s restructuring process and ongoing business operations.

“The restructuring agreement we signed today is a comprehensive plan that will ensure Gastar remains competitive in its industry,” Gastar’s interim CEO Jerry R. Schuyler said in a company statement. “We can now set our sights on facilitating a smooth, efficient in-court restructuring while continuing to meet our obligations to our employee and vendor constituencies.”

Gastar anticipates it will consummate the plan and emerge from Chapter 11 before the end of the year.

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