Privately-held Castex Energy Partners and four affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 17-35835. The Company, which engages in the exploration, development, production and acquisition of oil and natural gas properties, is represented by Louis M. Philips of Kelly Hart & Pitre.
According to documents filed with the Court, “After nearly two years of attempts to deal with the problematic pricing environment and resultant challenged capital structure, and after the sale process that yielded no solution, the Debtors, certain of the Prepetition Lenders (holding approximately 86% in principal amount of claims under the Prepetition Credit Agreement), CELL I and CEI agreed to the consensual restructuring transaction set forth in the Restructuring Support Agreement dated as of October 16, 2017 (the ‘RSA’) that incorporates a term sheet outlining the key provisions of a plan of reorganization for the Castex Debtors (the ‘Plan’).”
In addition, “Key components of the Plan include (i) conversion of a substantial portion of the Prepetition Lenders’ debt to equity through the agreed upon Transaction Structure, (ii) an agreement among the Debtors, the Prepetition Lenders, and CEI concerning the Shared Services Agreement and assumption of an amended version thereof, (iii) payment of undisputed vendor claims, (iv) assumption of JOAs, oil and gas leases (to the extent assumable) and various contracts, and (v) modification of the exit capital structure to allow for (a) repayment of exit facility debt and (b) maintenance of development potential with respect to the assets of the reorganized companies.”
Castex Energy Partners’ Chapter 11 petition indicates assets greater than $100 million.
Read more Castex Energy bankruptcy news.
The post Castex Energy Bankruptcy Filing appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.