Penn Virginia’s Second Amended Joint Plan of Reorganization with technical modifications became effective, and the Company emerged from Chapter 11 protection.
The Court confirmed the Plan on August 16, 2016. According to a corporate release, Penn Virginia emerges from bankruptcy having reduced total long-term debt by approximately $1.1 billion and substantially improved its cost structure. The Company closed on its new senior secured revolving credit facility led by Wells Fargo Bank, with a maximum note amount of $200 million and an initial borrowing base of $128 million.
In addition, Penn Virginia received a $50 million new money contribution through a rights offering subscribed by a large portion of its existing unsecured bondholders, who, together with existing secured lenders, sponsored the Plan. Upon emergence, Penn Virginia will have approximately $75.4 million drawn on its new revolving credit facility and $10.0 million of unrestricted cash. Penn Virginia also established a board of directors, comprised of Harry Quarls (chairman), Darin G. Holderness and Marc McCarthy. Other directors may be appointed at a later date.
Quarls comments, “We have emerged from bankruptcy with a significantly de-leveraged balance sheet and committed financial support from our senior lenders and other stakeholders. With improved liquidity and a stronger capital structure, we are well-positioned to realize the full value of our excellent asset portfolio. We are committed to working hard to reward their support as we refocus our attention on our operations. We look forward to working closely with all of our key stakeholders as we implement our long-term strategic plan.”
This onshore oil and gas producer filed for Chapter 11 protection on May 12, 2016, listing $518 million in pre-petition assets. Read more Penn Virginia bankruptcy news.
The post Penn Virginia Bankruptcy Plan Effective appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.