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Goodrich Petroleum Chapter 11 Petition Filed

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According to the U.S. Bankruptcy Court docket, Goodrich Petroleum and its subsidiary filed for Chapter 11 protection in Houston, TX. The Company announced that the filing was made in order to implement the terms of a restructuring support agreement (RSA).

The RSA and the bankruptcy proceeding will allow for a restructuring of the Company’s balance sheet by reducing long-term debt and enhancing financial flexibility. Through the Chapter 11 restructuring, the Company will eliminate approximately $400 million in debt. Specifically, the RSA eliminates all of the Company’s pre-petition funded indebtedness other than its first lien reserve based loan facility, which currently has approximately $40 million outstanding, resulting in a significantly deleveraged balance sheet upon the Company’s emergence from the Chapter 11 bankruptcy process. The RSA also provides for the Company’s executive management team to remain with the Company.

Goodrich Petroleum explains, “In consultation with its financial advisors and legal counsel, the execution of the RSA and today’s filing reflect the Company’s next step in its efforts to respond proactively in a depressed commodity environment. Prior to the Chapter 11 filing, the Company attempted to restructure its balance sheet through voluntary exchange offers, with the latest effort unsuccessful due to the inability to get the necessary approvals from its common stockholders, preferred stockholders and unsecured noteholders.”

The Company, which is engaged in the exploration, development and production of oil and natural gas, is represented by Bradley R. Foxman of Vinson Elkins. Read more oil and gas bankruptcy news.

The post Goodrich Petroleum Chapter 11 Petition Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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