Chaparral Energy is Latest Oklahoma Energy Firm to File Chapter 11 Bankruptcy

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Oklahoma City-based Chaparral Energy has become the latest Oklahoma oil and gas producer to file Chapter 11 bankruptcy. The firm filed Monday in the U.S. Bankruptcy Court of Delaware.

“This action will facilitate the restructuring of our balance sheet as we continue to work through negotiations of a debt to equity exchange with our bondholders and lenders,” said the company in a statement on its website. “Given the continued market environment presented by depressed oil and natural gas prices, Chaparral chose to voluntarily enter into Chapter 11 to allow us to significantly reduce our debt and amend our existing financing agreements.”

The company said it will also reduce the firm’s lever position and increase its liquidity by reducing debt by nearly $1.2 billion.

“Chaparral’s day-to-day operations will continue as normal, without interruption during this process,” continued the company statement.

The company listed assets ranging from $500 million to $1 billion and liabilities ranging from $1 billion up to $10 billion, according to documents on file with the bankruptcy court.

Among Chaparral’s largest debts is Wilmington Savings fund Society in Delaware. The firm holds Chaparral’s 7.625% Senior Notes due 2022 and amount to $525,910,000 in unsecured claims. The same company holds $385,045,000 in 8.25% Senior notes due 2021 and $298,000,000 in 9.875% Senior Notes due 2020.

Blue Cross Blue Shield of Oklahoma is a major creditor too, holding $675,000 in insurance for the company. Warrior Exploration and Production LLC of Barnsdall is a creditor with $232,800 in unsecured claims. Chesapeake Exploration LLC in Oklahoma City has an unsecured claim of $209,600. Others with unsecured claims under $200,000 are Red Mountain Energy, LLC of Oklahoma City, Herber Family LLC of Shattuck, Tiptop Oil and Gas US LLC of Oklahoma City, Quick Pump Service LLC of Hennessey, GE Oil and Gas ESP Inc. of Oklahoma City, Bostick Services corp. of Crescent, Bachman Services Inc. of Oklahoma City and Arrow Pump and supply of Seminole LLC of Seminole.