Tulsa’s Unit Corporation has emerged from Chapter 11 bankruptcy protection. This marks the successful completion of the Company’s financial restructuring process along with implementing the Company’s Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division on August 6, 2020.
The reorganization also included the naming of a new seven-member board of directors… Robert Anderson, Alan Carr, Phil Frohlich, Steven Hildebrand, David Merrill, Philip Smith, and Andrei Verona.
The company filed for bankruptcy in May of this year, citing more than $1 billion in debts. At the time, Unit Corporation said the reorganization would reduce its debt by more than $650 million.
“Our successful financial restructuring positions us to handle current challenges in the oil and gas industry and realize the potential of our Company,” said David T. Merrill, President and Chief Executive Officer.
Under the Plan, the Company will complete a debt-for-equity exchange with the holders of the Company’s previous 6.625% senior subordinated notes and will exchange its prior common stock for warrants to purchase its new common stock.
As part of the Plan, the Company converted its existing credit facility agented by BOKF, NA into a $140 million reserve-based lending revolving loan and $40 million term loan, which remains agented by Tulsa headquartered BOKF, NA and committed by all lenders under the previous facility. Additionally, the Company will have significantly reduced its unsecured debt liabilities, further bolstering its balance sheet.
The Company is seeking to facilitate trading of the new common stock on one of the OTC markets. Such market will be determined by the Board of Directors. The Company expects to complete this process during the 2020 fourth quarter and will publicly disclose the results once completed.
The Company expects the debt for equity exchange and the common stock for warrant exchange under the Plan to be completed during the 2020 fourth quarter.
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