Warren Resources filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “Presently, the Debtors have a substantial amount of indebtedness outstanding under various secured and unsecured debt issuances in an amount of approximately $486.3 million, and other obligations to various third parties. If the Debtors are not able to consummate the Restructuring, the Debtors will likely have to formulate an alternative plan or liquidate, and the Debtors’ financial condition will likely be further materially adversely affected.”
Court-filed documents continue, “The Restructuring will reduce the amount of the Debtors’ outstanding indebtedness by converting the claims of the First Lien Lenders, Second Lien Lenders and holders of Senior Notes into equity in the Reorganized Debtors and (in the case of the First Lien Lenders) the New First Lien Facility. Existing equity in Warren will be cancelled. By deleveraging their balance sheet, the Debtors will have more liquidity to develop their assets and operate their business. Without the conversion of the Claims of the First Lien Lenders, Second Lien Lenders and holder of Senior Notes as contemplated in the Plan, the Debtors would not have sufficient liquidity to maintain their business as a going concern.”
The Court subsequently approved the Disclosure Statement and scheduled a September 14, 2016 hearing to consider the Plan. Read more Warren Resources bankruptcy news.
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