Davis Polk is advising an ad hoc group of holders of the second-lien notes of Midstates Petroleum Company, Inc. in connection with Midstates Petroleum’s chapter 11 bankruptcy case in the Bankruptcy Court for the Southern District of Texas.

Before the April 30, 2016 chapter 11 filing, the members of the ad hoc group agreed to a Plan Support Agreement with the company and a substantial amount of first-lien lenders and third-lien noteholders. The restructuring plan was confirmed on September 29, 2016 by the Bankruptcy Court after a settlement was reached with the official committee of unsecured creditors following a lengthy contested confirmation process. Under the confirmed plan, the second-lien noteholders are expected to receive $60 million in cash and 96.25% of reorganized Midstates Petroleum equity upon emergence from bankruptcy. The settlement with the unsecured creditors committee also entailed the withdrawal with prejudice of numerous litigation claims asserted against second-lien noteholders.

Midstates Petroleum is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil- and liquids-rich basins in the onshore United States. Its operations are currently focused on oil fields in the Mississippian Lime play in Oklahoma and the Anadarko Basin in Texas and Oklahoma.

Members of the ad hoc group include Avenue Capital Management, Pine River Capital Management, Sound Point Capital Management and Marble Ridge Capital.

The Davis Polk insolvency and restructuring team includes partner Brian M. Resnick and associates Natasha Tsiouris and Benjamin M. Schak. The litigation team includes partners Elliot Moskowitz and Neal A. Potischman and associate Andrew S. Gehring. The finance team includes partner Lawrence E. Wieman and associate Vivian Y. Wong. Members of the Davis Polk team are based in the New York and Northern California offices.

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