Chaparral Energy’s First Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on March 10, 2017. During the restructuring, the Company converted $1.2 billion of pre-petition debt to equity and eliminated approximately $100 million of annual interest expense.
Chaparral Energy C.E.O., K. Earl Reynolds, comments, “Our emergence marks a new and prosperous time in Chaparral’s storied history. Our balance sheet now provides the stability and opportunity needed to focus our operations on developing our approximate 100,000 net acre position in the STACK Play. With more than 5,000 potential STACK locations and one of the industry’s lowest operating cost structures, we are well-positioned to generate significant returns for Chaparral and our investors in the near- and long-term future.”
A corporate release notes that Chaparral Energy’s new capital structure includes cash on hand as well as a reserve based lending facility with an initial borrowing base of $225 million and an additional $150 million term loan. Both the revolver and term loan will mature in four years. The Company also received an additional $50 million in cash after issuing equity from a rights offering. Chaparral Energy currently has more than $100 million in liquidity.
In accordance with its Reorganization Plan, Chaparral Energy’s newly-appointed independent, seven-member board of directors became effective and includes the following individuals: Reynolds, Douglas Brooks, Matt Cabell, Robert Heinemann, Sam Langford, Ken Moore and Gysle Shellum.
BankruptcyData’s Plan Summary notes, “Under the Plan, Chaparral Energy’s unsecured bondholders and general unsecured creditors will own 100% of the Company’s ownership interest, subject to some dilution.” This oil and natural gas explorer and producer filed for Chapter 11 protection on May 9, 2016, listing $1.3 billion in pre-petition assets.
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