Whiting Petroleum Corporation revealed Wednesday that it has commenced a voluntary Chapter 11 case under the United States bankruptcy code in the U.S. Bankruptcy Court for the Southern District of Texas.
The company said it will continue to operate its business “without material disruption to its vendors, partners or employees”. Whiting noted that it currently expects to have sufficient liquidity to meet its financial obligations during the restructuring without the need for additional financing.
The business also revealed that it has reached an agreement in principle with certain holders of its 1.25 percent convertible senior notes due 2020, 5.750 percent senior notes due 2021, 6.250 percent senior notes due 2023 and 6.625 percent senior notes due 2026 regarding a term sheet that contemplates a “comprehensive restructuring”.
Whiting said the proposed financial restructuring would significantly reduce the company’s debt and establish a more sustainable capital structure pursuant to a consensual chapter 11 plan of reorganization that would be supported by the supporting noteholders on the terms of such restructuring support agreement.
“Given the severe downturn in oil and gas prices driven by uncertainty around the duration of the Saudi/Russia oil price war and the covid-19 pandemic, the company’s board of directors came to the conclusion that the principal terms of the financial restructuring negotiated with our creditors provides the best path forward for the company,” Bradley J. Holly, Whiting’s chairman, president and CEO, said in a company statement.
“We are pleased to have secured a highly constructive restructuring framework with a critical mass of our noteholders. Through the terms of the proposed restructuring, we believe a right-sized balance sheet will enable us to capitalize on our enhanced cost structure, high-quality asset base and successfully compete in the current environment,” he added.
“I want to express my gratitude to the employees for their continued dedication and hard work, and to our service providers and business partners for their ongoing support during this time. Following the restructuring process, we look forward to having substantially less debt and a significantly improved outlook for our company and its stakeholders,” Holly continued.
Headquartered in Denver, Colorado, Whiting is one of the largest independent exploration and production companies in the U.S. with an oil focused asset base, according to its website. The business was founded in 1980.
To contact the author, email andreas.exarheas@rigzone.com
No comments:
Post a Comment