Whiting Petroleum Enters Into Restructuring Support Agreement, Files Chapter 11 Reorganization Plan
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Whiting Petroleum Corporation and certain subsidiaries have entered into a restructuring support agreement (RSA) with certain holders of its 1.25 percent convertible senior notes due 2020, 2021, 2023, and 2026. In addition, the company has filed a consensual chapter 11 plan of reorganization and a related disclosure statement with the United States Bankruptcy Court for the Southern District of Texas.
The plan outlines a proposed path to strengthen the company’s balance sheet, reducing debt and improving liquidity in order to emerge from bankruptcy as a financially stronger company in accordance with the terms of the RSA.
“We are pleased to have secured a highly constructive RSA with certain holders of our senior notes. Through the proposed terms of the plan of reorganization, we believe a right-sized balance sheet will enable us to capitalize on our enhanced cost structure, high-quality asset base and successfully compete in the current environment,” said Bradley J. Holly, the company’s chairman, president and CEO.
The RSA and the plan provide for, among other things: (1) significant de-leveraging of the company’s capital structure by over $2.3 billion through the exchange of all of the senior notes as well as certain other general unsecured claims for 97 precent of the new equity of the reorganized company to be issued pursuant to the plan; (2) payment in full of the company’s revolving credit facility, other secured creditors, tax and other priority claimants, employees, working interest partners and certain trade creditors (other than litigation and rejection damages claimants); and (3) existing equity holders to receive 3 percent of the new equity of the reorganized company and warrants to purchase additional equity of the reorganized company. Consummation of the plan will be subject to confirmation by the Court in addition to other conditions to be set forth in the plan, the RSA and related transaction documents.
The full terms of the plan and disclosure statement, as well as the related pleadings, are available online HERE
About Whiting Petroleum Corporation
Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain region of the United States. The company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado.
To stop by Whiting Petroleum’s website, CLICK HERE
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