LINN EnergyLLC said that it has entered into a settlement agreement withcertain holders of the company's $1.0 billion of outstanding 12% senior securedsecond lien notes due 2020, to begin negotiating the terms of a potentialrestructuring of the company's indebtedness, including a potentialrestructuring under a Chapter 11plan of reorganization.

Under the terms of the agreement, LINN delivered themortgages for the second lien notes and is no longer in default, the companysaid in an April 5 news release.

As LINN defaultedon its credit facility and second-lien indenture in March, an offer to exchange eachoutstanding unit of LINN for one LinnCo share, giving LINN unit holders thechoice to transfer their investments to LinnCo in case of debt restructuringsor other strategic transactions by LINN.