Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Penn Virginia Chapter 11 Petition Filed

0
0

Penn Virginia and eight affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Eastern District of Virginia, lead case number 16-32395. The Company, which is engaged in the onshore exploration, development and production of oil, natural gas liquids and natural gas, is represented by Michael A. Condyles of Kutak Rock.

The Company announced that the filing was made to facilitate the deleveraging of their consolidated balance sheet through a prearranged restructuring that will reduce its long-term debt by more than $1 billion. Penn Virginia entered into a restructuring support agreement with holders of 87% (or $1.03 billion) of its nearly $1.2 billion in total funded-debt obligations. Subject to Court approval, the Company has received a commitment for $25 million in debtor-in-possession financing from its RBL lenders, which combined with the Company’s cash reserves and cash from operations, is expected to provide liquidity throughout the Chapter 11 process.

Additionally, the Company has obtained a commitment for up to $128 million in exit financing from its RBL lenders, led by Wells Fargo as agent, as well as a $50 million rights offering that is backstopped and supported by certain of the Company’s senior unsecured noteholders. Edward B. Cloues, II, chairman and interim C.E.O. of Penn Virginia, comments, “Once the restructuring is implemented, the Company will have substantially less debt and a much stronger balance sheet We will be in a better position to navigate the current industry environment and leverage the value of our underlying assets and operational expertise. Importantly, the announcement today provides Penn Virginia with an expedited plan to emerge from this process with committed financing, a new money investment, and a clear path to future production and success. Like many other exploration and production companies, Penn Virginia has been significantly affected by the recent and continued dramatic decline in oil and natural gas prices.”

Read more oil & gas bankruptcy news.

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


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images