As dozens of oil producer bankruptcies stack up in the wake of plummeting oil prices, one Texas-based company plans to harness the power of bankruptcy to position itself for future financial growth.

Magnum Hunter Resources Corporation and a number of its wholly-owned subsidiaries (collectively Magnum) recently announced that they have filed for Chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the District of Delaware. In the bankruptcy petition, the company estimated that its liabilities totaled at least $1 billion.

To fund its operations during its bankruptcy, the company's lenders agreed to provide up to $200 million in financing, which will also convert into equity when Magnum emerges from bankruptcy, according to a statement recently released by the company.