Oklahoma City-based Templar Energy LLC has restructured $1.45 billion of debt in order to avoid bankruptcy after securing unanimous lender approval of its reorganization plan, according to a report by The Oklahoman.
The oil and natural gas producer’s second lien lenders canceled $1.45 billion in debt in exchange for $133 million in cash and 45 percent of the equity in the reorganized company.
“Management is extremely pleased with the unanimous support it has received from all its constituents, enabling the company to seamlessly implement this deleveraging transaction and leave the company with significant liquidity, operational flexibility and poised to execute on attractive growth opportunities,” said David Le Norman, CEO.
Last month, Templar announced the restructuring plan when 82 percent of its second lien lenders approved the plan. Templar announced that it would seek bankruptcy protection before 2017 if it could not reach a voluntary deal with lenders.
At least nine Oklahoma oil and natural gas companies with debts totaling more than $14.3 billion have sought bankruptcy protection over the past year, according to the report.