Appalachian pure-play Arsenal Resources Development LLC has completed bankruptcy proceedings, with a prepackaged reorganization plan expected to take effect in the first week of January.

The company filed for Chapter 11 bankruptcy protection in November with support from its existing lenders and most of its equity holders. The U.S. Bankruptcy Court for the District of Delaware confirmed the plan earlier in December.

Under the reorganization, $360 million of long-term debt will be converted into equity, including a $100 million investment by affiliates of Chambers Energy Capital and Mercuria Energy Co., two of the company’s leading lenders. Chambers and Mercuria will make the investment in exchange for a majority ownership stake.

When the plan takes effect, Arsenal would also have access to a partially drawn credit facility with a borrowing base of $130 million.

“This transaction significantly reduces Arsenal Resources’ long-term debt and aligns the Company’s midstream agreements with its current development plan,” Arsenal said. “In addition to liquidity available under its new reserve-based credit facility, the company expects to be cash flow positive in 2020 and is well positioned to execute on its operational plan.”

The reorganization follows a separate proceeding earlier this year in which holding company Arsenal Energy Holdings LLC filed for bankruptcy to wipe out more than $800 million of debt. Those proceedings didn’t impact Arsenal Resources, which has about 208,000 net acres in Pennsylvania and West Virginia.