Upstream: Restructuring: Fieldwood Energy: Chapter 11 Bankruptcy
Fieldwood Energy LLC, a Houston-based, private-equity backed exploration and production company (the Company), is focused on the acquisition and development of oil and gas assets in the Gulf of Mexico region. On February 14, 2018, the Company filed for chapter 11 bankruptcy protection in the Southern District of Texas through a ‘prepackaged’ plan, which included a debt-for-equity swap and the purchase of $525 million of assets.
The Company engaged Opportune LLP as its financial advisor. Opportune led the Company’s Chapter 11 reorganization efforts. The scope of services performed include:
- Assistance in the preparation of bankruptcy documents, including “first day” motions
- Assistance in the preparation of financial-related disclosures required by the Bankruptcy Court
- Assistance with the identification of executory contracts and leases
- Review and analysis of creditor claims
- Assistance in the preparation of information and analysis necessary for the confirmation of a plan of reorganization
- Ongoing support with respect to managing the day-to-day requirements of the bankruptcy process
- Rendering such other general financial, restructuring and business consulting as necessary during the proceeding
The entire restructuring and recapitalization process received a 100% vote of approval from lenders and attracted 100% participation in the equity rights offering.
Specifically, Opportune added value by advising the Company on matters concerning bankruptcy related business operations and with non-strategic issues related to operating in chapter 11, such as employee and vendor communication. Opportune assisted the Company in the preparation of each Monthly Operating Report and in the resolution of objections to the Plan of Reorganization and Disclosure Statement. Opportune also prepared various communications related to the cases, reviewed docket filings and participated in meetings with management and other professionals.
The Company ultimately emerged from bankruptcy on April 11, 2018. On April 12, 2016, the Company announced the closing of its acquisition of all of Noble Energy Inc.’s deepwater oil and gas assets located in the Gulf of Mexico. This acquisition was a key component of Fieldwood’s successful restructuring and recapitalization plan.
Through the prepackaged plan, the Company raised $525 million of capital, which was used to fund the acquisition and provide general working capital, while reducing its debt levels by $1.6 billion and eliminating $134 million in annual cash interest.
Since inception, Opportune has been one of the most active financial advisory firms in the energy sector. Our restructuring experience, coupled with our energy-industry expertise, maximizes value for constituents in a distressed situation. We think strategically, and deliver results both operationally and financially through hands-on, actionable implementation to meet the challenges of business turnarounds.
We serve equity, secured lenders, unsecured creditors and others throughout the capital structure to enhance value and increase recoveries during times of operational and financial crisis. For more information on our Restructuring services, click here.