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Midstates Petroleum Chapter 11 Petition Filed

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Midstates Petroleum Company and one affiliated Debtor filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 16-32237. Jake Brace, president and C.E.O., comments, “The sharp decline in oil prices since 2014 has put much of the oil and gas industry in financial difficulty. While our premier Mississippian Lime assets can achieve solid rates of return in the current price environment, our highly leveraged balance sheet has severely limited our ability to sustain our operations during an extended period of low prices.”

According to a corporate release, the bankruptcy filing will facilitate a pre-arranged restructuring of its consolidated balance sheet. The Company has entered into a plan support agreement (PSA) with its lenders under the Company’s reserve-based revolving credit facility representing approximately 80% in principal amount of its first lien debt, along with certain other creditors holding approximately 74% in principal amount of the Company’s second lien debt and approximately 77% in principal amount of its third lien debt. Among other things, the PSA contemplates the following: (i) the permanent pay-down of $82 million of first lien debt and a $170 million credit facility upon emergence in the form of either a reserve-based revolving credit facility, a term loan or a combination thereof; (ii) the pay-down of up to $60 million of second lien debt and (iii) the conversion into equity of all of the Company’s remaining debt junior to the first lien debt.

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


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