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Energy XXI Chapter 11 Bankruptcy Restructuring

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According to documents filed with the U.S. Bankruptcy Court, Energy XXI and 24 affiliated Debtors filed for Chapter 11 protection in Houston, TX.

The Company announced its entry into a restructuring support agreement (RSA) with holders of more than 63% of its secured second lien 11.0% notes on the material terms of a balance sheet restructuring plan that will strengthen its financial position by reducing long-term debt and enhancing financial flexibility. Through the Chapter 11 restructuring, Energy XXI will eliminate more than $2.8 billion in debt from its balance sheet and substantially deleverage its capital structure.

The RSA eliminates substantially all of the Company’s pre-petition funded indebtedness other than its first lien reserve based loan facility, resulting in a significantly deleveraged balance sheet upon emergence from the Chapter 11 bankruptcy process. The RSA also provides that John Schiller will continue as the reorganized company’s C.E.O. and a member of its board of directors.

The Company is continuing ongoing negotiations with a steering committee of lenders under its first lien reserve based loan facility that is not party to the RSA at this time.

Energy XXI’s president and C.E.O., John Schiller, comments, “Over the last several months, we have worked to actively manage our balance sheet, and after thoroughly evaluating our options with the help of our outside advisors, we determined that entering these agreements and implementing them through a court-supervised process is the best course of action for Energy XXI and all our stakeholders….Our production is on track as we continue to focus our operations on low-risk, high-re­turn projects.”

The Company believes it has sufficient liquidity, including approximately $180 million of cash on hand as of March 31, 2016 and funds generated from ongoing operations, to continue its operations and support the business in the ordinary course during the financial restructuring process.

Energy XXI, which is engaged in the acquisition, development, operation and exploration of oil and natural gas properties, is represented by Bradley R. Foxman of Vinson & Elkins.

Read more energy bankruptcy news.

The post Energy XXI Chapter 11 Bankruptcy Restructuring appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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