Approved plan eliminates more than $1 billion of debt and confers approximately 96% ownership of the company to noteholders~~Milbank, Tweed, Hadley & McCloy LLP advised the Ad Hoc Committee of Noteholders of independent energy producer Penn Virginia Corp. (“Penn Virginia” or the “Company”), whose Chapter 11 reorganization plan was approved by a U.S. Bankruptcy Court judge on August 11, 2016.~~As a result of the reorganization, Penn Virginia, one of the largest oil and natural gas drillers in Texas’ Eagle Ford Shale, will be owned by the Company’s noteholders and unsecured creditors.~~Penn Virginia entered Chapter 11 this past May with a pre-negotiated plan of reorganization supported by revolving credit lenders and almost all of its noteholders. The Company subsequently reached agreements with equity security holders and pipeline contractor Republic Midstream. The Chapter 11 cases were some of the fastest in the oil and gas sector to date, reaching confirmation of the plan of reorganization in 3 months from the petition date.~~The entirely consensual plan avoided potential litigation with various contract parties and an ad hoc equity committee and involved approval of a hedging program on day one that was a key piece to Noteholder Committee financing.~~The plan eliminates more than $1 billion of debt, and includes a $50 million rights offering of new equity. Upon the effective date of the plan of reorganization, the noteholders will hold approximately 96% of the equity in reorganized Penn Virginia.~~The Milbank team was led by Financial Restructuring partners Dennis Dunne and Samuel Khalil. Also advising the Committee were special counsel Brian Kinney and associate Bradley Scott Friedman of the Financial Restructuring Group; Corporate partner Scott Golenbock; Capital Markets partner Paul Denaro and associate Elizabeth McNichol; and Litigation & Arbitration partner Aaron Renenger.