Vanguard Natural Files for Bankruptcy

Oil and natural gas explorer Vanguard Natural Resources LLC filed for bankruptcy protection, adding to a long list of energy firms that have succumbed to weak oil prices.

The company said it signed an agreement with certain bondholders that includes a $19.25 million equity investment, with some debtors backing a $255.75 million rights offering.

Vanguard also said it had obtained a $50 million debtor-in-possession financing facility, underwritten by Citibank NA, JPMorgan Securities LLC and Wells Fargo Bank NA.

The financing, which is subject to court approval, combined with Vanguard's cash from operations, is expected to give the company sufficient liquidity during the Chapter 11 process.

Paul Hastings LLP is serving as Vanguard's legal counsel and Evercore Partners (EVR) is the company's financial adviser. Opportune LLP is the restructuring adviser.

Reporting by Swetha Gopinath