Rosehill Resources Files for Chapter 11 Bankruptcy
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Rosehill Resources Inc. have commenced voluntary Chapter 11 under the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, pursuant to the terms of the previously released restructuring support agreement (RSA) between the company, the lenders under Rosehill’s revolving first lien credit facility, holders of Rosehill’s second lien notes and the company’s series B preferred stock, and Tema Oil and Gas Company, as the holder of approximately 66.8 percent of the equity interests in the company and 35.2 percent of the equity interests in Rosehill Operating and party to the company’s tax receivable agreement.
In connection with the Chapter 11 cases, Rosehill has filed customary motions authorizing it to proceed with its operations, including to enter into a $17.5 million junior convertible secured debtor-in-possession delayed-draw term loan facility and use cash collateral. The company currently expects that the DIP facility will provide sufficient liquidity to meet its financial obligations during the duration of the Chapter 11 cases. The company expects to continue to operate its business during the Chapter 11 cases without material disruption to its vendors, partners, or employees.
Under the RSA, Rosehill and the consenting creditors have reached an agreement on the terms of a prepackaged plan of reorganization. Following consummation of the plan, the company’s equity will be owned solely by certain of the consenting creditors and holders of the company’s preferred stock, and holders of general unsecured claims, including the company’s trade creditors and vendors, will pass through the Chapter 11 Cases with their claims unimpaired by the bankruptcy and being satisfied in full.
About Rosehill Resources Inc.
Rosehill Resources Inc. is an independent oil and gas exploration company with assets positioned in the Delaware Basin portion of the Permian Basin. The company’s strategy includes the focused development of its multi-bench assets in the Northern Delaware Basin and the Southern Delaware Basin, as well as adding economic drilling inventory to support future growth.
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