Bonanza Creek Energy’s Third Amended Joint Prepackaged Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on April 7, 2017.
BankruptcyData’s detailed Plan Summary notes, “The Plan and the Restructuring Support Agreement contemplate a restructuring that provides for, among other things, either payment in full in cash of the RBL Credit Facility or participation by holders of Allowed RBL Credit Facility Secured Claims in a new credit facility to replace the RBL Credit Facility or such other treatment, the equitization of General Unsecured Claims, including the approximately $800 million in aggregate principal amount of Notes Claims and payment in full in cash of Unsecured Trade Claims. The Plan further contemplates a $200 million Rights Offering that is fully backstopped by certain members of the Ad Hoc Committee in accordance with the terms of the Backstop Agreement, to finance the Reorganized Debtors’ emergence from the Chapter 11 Cases. The restructuring contemplated by the Plan and the Restructuring Support Agreement will deleverage Bonanza Creek’s balance sheet and leave it positioned to succeed in the highly competitive oil and natural gas industry.”
In addition, “The Liquidation Analysis for the Debtors estimates the Liquidation Proceeds Available for Distribution to Creditors to be between $37.7 million and $72.2 million. The recovery rate to the Total Secured Claims is estimated to be 1%. The recovery rate to the Unsecured Claims – Senior Notes and the General Unsecured Claims (Class 1D, 3D-7D) is estimated to be 4% to 8%.” Richard Carty, president and C.E.O., states, “We are very pleased to announce our emergence from Chapter 11, and I am very thankful to all of our dedicated employees and stakeholders for their efforts in this process, getting the Company from filing to emergence in little over 100 days. With our legal proceedings behind us, we look forward to resuming drilling and completion activities with a clean balance sheet that can support long-term sustainable growth in the current environment.”
This oil and gas producer filed for Chapter 11 protection on January 4, 2017, listing $1.3 billion in pre-petition assets.
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