Oklahoma City-based Chaparral Energy announced it has completed its financial restructuring and emerged from Chapter 11 bankruptcy protection.
The company’s reorganization plan was recognized and approved by the U.S. District Bankruptcy Court of Delaware on March 10. It allowed conversion of $1.2 billion of pre-petition debt to equity and elimination of nearly $100 million in annual interest expense.
The new capital structure includes its cash on hand, as well as a reserve based lending facility with an initial borrowing base of $225 million and another $150 million term loan. The company also received an additional $50 million in cash after issuing equity from a rights offering, resulting in more than $100 million in equity for Chaparral.
As a result of the court’s approval, a newly appointed independent, seven-member board of directors also became effective on Tuesday. The new board members include Chief Executive Officer K. Earl Reynolds, Douglas Brooks, Matt Cabell, Robert Heinemann, Sam Langord, Ken Moore and Gysle Shellum.
“I would like to thank our lenders, noteholders, advisors and members of our former board of directors for their guidance and efforts in helping Chaparral successfully complete this process,” said Reynolds.