Linn Energy LLC (NASDAQ:LINE), LinnCo LLC (NASDAQ:LNCO), and Berry Petroleum announced that the United States Bankruptcy Court for the Southern District of Texas has granted the relief requested by the Company in key first day motions related to ordinary course business activities. The approved motions give the Company the authority to, among other things, continue to pay employee wages and benefits without interruption, to utilize its current cash management system, and to make royalty payments.

Mark E. Ellis, Chairman, President and Chief Executive Officer, said, “With these approvals, the Company will continue normal operations as we implement a comprehensive financial restructuring. Importantly, I would like to thank all of our employees for their continued dedication to our Company as we continue working constructively with our vendors, suppliers, and partners.”

The Company received Court approval of a motion that will allow it to use its cash to fund its Chapter 11 cases, pursuant to the agreement with the first lien lenders. The approval will be reflected in a Court Order entered Monday, May 16, 2016. The Company anticipates that the cash available to it during its Chapter 11 Cases will likely provide sufficient liquidity to support the business during the financial restructuring process.

For goods and services provided post-Chapter 11 filing, the Company intends to pay vendors in full under normal terms. The Company intends to meet its obligations in the ordinary course and expects its operations to continue uninterrupted throughout the reorganization process.

As previously announced, on May 11, the Company entered into a Restructuring Support Agreement with holders of at least 66.67% by aggregate outstanding principal amounts of LINN’s Amended and Restated Credit Agreement, dated as of April 24, 2013, as amended, and Berry’s Second Amended and Restated Credit Agreement, dated as of November 15, 2010, as amended. To implement the terms of the agreement, the Company filed voluntary petitions for a court-supervised restructuring under Chapter 11 of the United States Bankruptcy Code. (Original Source)

Shares of Linn Energy closed on Friday at $0.12, down $0.023 or -16.14%. LINE has a 1-year high of $12.82 and a 1-year low of $0.12. The stock’s 50-day moving average is $0.35 and its 200-day moving average is $1.10.

On the ratings front, Linn Energy has been the subject of a number of recent research reports. In a report issued on February 18, Wells Fargo analyst Praneeth Satish downgraded LINE to Sell, with a price target of $0.50, which implies an upside of 316.7% from current levels. Separately, on February 12, Citigroup’s Faisel Khan downgraded the stock to Sell.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Praneeth Satish and Faisel Khan have a total average return of -47.9% and 13.6% respectively. Satish has a success rate of 25.0% and is ranked #3787 out of 3845 analysts, while Khan has a success rate of 76.9% and is ranked #224.

Linn Energy, LLC is a oil and natural gas company, which engages in development, exploitation and acquisition of natural gas. It seeks to be the operator of its properties so that it can develop drilling programs and projects. The company was founded by Michael C. Linn on March 14, 2003 and is headquartered in Houston, TX.