Whiting Petroleum’s bankruptcy advances in court

After filing Chapter 11 bankruptcy, Denver’s Whiting Petroleum Corporation announced it’s entered into a restructuring support agreement with holders of its convertible senior notes.

The agreement applies to holders of the 1.25% convertible notes due this year, 5.750% notes due in 2021, 6.250% notes due 2023 and 6.625% notes due 2026.

In addition, the Company has filed a consensual chapter 11 plan of reorganization and a related disclosure statement with the United States Bankruptcy Court for the Southern District of Texas. The Plan outlines a proposed path to strengthen the Company’s balance sheet, reducing debt and improving liquidity in order to emerge from bankruptcy as a financially stronger company in accordance with the terms of the RSA. The plan also calls for existing equity holders to receive 3% of the new equity of the reorganized company.

Bradley J. Holly, the Company’s Chairman, President and CEO, commented, “We are pleased to have secured a highly constructive RSA with certain holders of our Senior Notes. Through the proposed terms of the plan of reorganization, we believe a right-sized balance sheet will enable us to capitalize on our enhanced cost structure, high-quality asset base and successfully compete in the current environment.”

A hearing will be scheduled with the Court to consider approval of the Disclosure Statement related to the Plan. Following Court approval of the Disclosure Statement, the Company will distribute the Plan and Disclosure Statement to voting creditors and other parties in interest for their consideration.

Source: Business Wire