US independent Jones Energy has emerged from Chapter 11 bankruptcy protection, wiping $1 billion in debt from its books.

“Jones Energy emerges from Chapter 11 in a strong financial position with the flexibility to optimise the value of its assets for all our stakeholders,” chief executive Carl Giesler said.

The plan, filed in April, proposed converting all debt into equity with a new exit credit facility of up to $20 million.

Holders of first lien notes received a pro rata share of 96%, while unsecured note holders received a pro rata share of 4% of new common equity.

The company also said it had entered into a new reserve-based credit facility of an initial borrowing base of $225 million with a group of banks led by TD Securities. Jones will emerge with no outstanding borrowings and initially elected to take an aggregate commitment of $150 million from the new facility.

The Anadarko basin-focused company struggled following the oil price crash in 2014, selling off non-core acreage and halting drilling activities, following that with a reduction in headcount by 30%.

More recently, founder Johnny Jones was replaced as chief executive by current head Giesler.

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Chapter 11 exit for Jones