On January 4, 2016, Bonanza Creek Energy, Inc. and certain of its affiliates (collectively, “Bonanza” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.
According to the affidavit of Bonanza’s Senior Vice President and Principal Financial Officer, Scott Fenoglio (the “Fenoglio Declaration”), Bonanza has entered into a restructuring support agreement with the support of 51% of holders of Debtor’s senior notes, as well as the support of an existing crude oil purchase and sale counterparty, NGL Crude Logistics, LLC, and its parent company, NGL Energy Partners LP. The agreement contemplates a plan that would include, among other things, a debt-for-equity swap with senior noteholders and an injection of additional working capital from a rights offering backstopped by certain of the senior noteholders. See Fenoglio Declaration at 17–18.
Debtors are an independent oil and natural gas company engaged in the acquisition, exploration, development, and production of oil and associated liquids-rich natural gas in the United States, with assets and operations concentrated primarily in northern Colorado (Wattenberg Field and North Park Basin) and other assets in south Arkansas (Dorcheat Macedonia Field and McKamie Patton Field). See Fenoglio Declaration at 5–7.
As of January 4, 2017, Debtors’ liabilities totaled approximately $1.0 billion in funded debt obligations, including (i) $191.7 million pursuant to credit agreement with KeyBank National Association, as administrative agent; (ii) $500 million in 6.750% senior unsecured notes due 2021; and (iii) $300 million in 5.75% senior unsecured notes due 2023. See Fenoglio Declaration at 9–10.
The Debtors’ bankruptcy case are being jointly administered under the lead bankruptcy case, In re Bonanza Creek Energy, Inc., Case No. 17-10015. The bankruptcy case has been assigned to Judge Kevin J. Carey.
A copy of the Fenoglio Declaration can be accessed here: Download Fenoglio Declaration
For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney.
For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.