Chaparral Energy filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including December 5, 2016 and February 3, 2017, respectively.
The motion explains, ” As described in the Fischer Declaration, in the months prior to the Petition Date, the Debtors diligently evaluated, in consultation with their advisors, a number of options to address the Debtors’ looming liquidity issues in a sustained low commodity price environment. The Debtors commenced extensive, arms-length negotiations with the Prepetition Lenders and the Ad Hoc Committee regarding the terms of a restructuring support agreement outlining the terms of a plan. While the Debtors, the Prepetition Lenders, and the Ad Hoc Committee were unable to agree on the terms of a restructuring support agreement prior to the Petition Date, the Debtors have continued to negotiate postpetition with the Prepetition Lenders and the Ad Hoc Committee.”
The motion continues, “Since the Petition Date, the Debtors, the Prepetition Lenders, and the Ad Hoc Committee have been working diligently to reach an agreed-upon framework that forms the cornerstones of a plan. The parties have exchanged numerous term sheets and the Debtors believe that significant progress towards a consensual plan has been made. Accordingly, the Debtors believe that extending the Exclusive Periods will provide all parties involved in the negotiations the opportunity to reach an agreement on the terms of a consensual plan that will maximize the interests of all of the Debtors’ creditors and other parties in interest.” The Court scheduled an October 13, 2016 hearing on the motion, with objections due by September 23, 2016.
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