Venoco and six affiliated Debtors (including Denver Parent) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-10655.
The Company, which acquires, explores and develops oil and natural gas properties, is represented by Robert J. Dehney of Morris, Nichols, Arsht & Tunnell. Venoco concurrently announced an agreement with its senior lenders to reduce the company’s debt load and restructure the balance sheet. Under the terms of the agreement, these lenders have agreed to support a restructuring transaction that will eliminate approximately $1 billion of debt from Venoco’s balance sheet.
According to documents filed with the Court, “Despite having a strong asset base, the Debtors, like many of their industry peers, have struggled this past year to maintain liquidity as a result of the protracted and continuing decline in oil prices and the general dislocation of the energy markets.” Mark DePuy, Venoco’s C.E.O., comments, “After carefully evaluating our options, we have determined that the agreement to restructure our balance sheet and reduce our debt represents the best way to strengthen our finances and position ourselves for the future.”
Venoco founder Tim Marquez will remain executive chairman during the restructuring process, and the Company’s senior lenders have retained him to provide leadership and strategic counsel to the Company after emergence from Chapter 11 protection. Venoco, Inc. is a subsidiary of Denver Parent Corporation.
Read more Venoco bankruptcy news.
The post Venoco (Denver Parent) Chapter 11 Petition Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.