Whiting Petroleum announced it has entered into a restructuring support agreement with certain holders of its 1.25% convertible senior notes due 2020, 5.750% senior notes due 2021, 6.250% senior notes due 2023 and 6.625% senior notes due 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,” Whiting said in a statement. The restructuring support agreement and the pan provide for “significant” de-leveraging of the company’s capital structure by over $2.3B through the exchange of all of the senior notes and payment in full of the company’s revolving credit facility, the company said. Existing equity holders will receive 3% of the new equity of the reorganized company and warrants to purchase additional equity. A hearing will be scheduled with the court to consider approval of the plan. Shares of Whiting Petroleum are down 19% to $1.36 in premarket trading.
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