Upstream: Restructuring: PetroQuest Energy: Chapter 11 Bankruptcy Reorganization
Lafayette, Louisiana-based PetroQuest Energy Inc. (“the Company”) operates as an independent oil and gas company in Texas and Louisiana. The company acquires, explores for, develops and operates oil and gas properties. As of December 31, 2018, it had estimated proved reserves of 1.2 million barrels of oil, 17 billion cubic-feet-equivalent (Bcfe) of NGL and 106.2 Bcf of natural gas.
In November 2018, The Company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Houston, citing a reorganization plan to eliminate $204.5 million in debt. The Official Committee of the Unsecured Creditors (“UCC”) appointed in the case retained Dacarba LLC professionals to provide financial advisory services for the client in connection with the Chapter 11 case before the U.S. Bankruptcy Court for the Southern District of Texas, Houston.
Among the scope of activities Dacarba LLC professionals performed include:
- Assisted the client with all matters related to the reorganization of the Company;
- Reviewed, monitored and analyzed the Company’s operations, financial condition, business plan, liquidity, strategy and operating forecast;
- Assisted in the review of financial information distributed by the Company to the client and other constituencies, including cash flow projections and budgets, claims, cash receipts and disbursement analysis, business plans, valuations and analysis of various asset and liability accounts;
- Assisted in the determination of an appropriate go-forward capital structure for the Company;
- Attended meetings with and on behalf of the UCC;
- Assisted the client in developing, evaluating, structuring and negotiating terms and conditions of any restructuring or Plan of Reorganization as may be presented or offered, including the value or reasonableness of any securities that may be issued to the client under any such restructuring or Plan;
- Reviewed the Company’s collateral;
- Evaluated the Company’s debt capacity;
- Performed a valuation of the Company’s assets;
- Analyzed financing, merger, divestiture, joint venture or investment transaction(s);
- Assisted the UCC in analyzing any new debt and/or equity capital (including advice on the nature and terms of new securities); and
- Provided other general restructuring assistance as required by the client.
Dacarba LLC professionals added value to the client engagement by securing a significant cash settlement from the Company for creditors deemed out of the money on basis of the Plan of Reorganization. As a reflection of the work we did in this engagement, we were also able to secure additional work as the General Unsecured Claims Administrator following the case (this work is ongoing).
As a trusted advisor and partner, Dacarba works with private capital providers, underperforming and distressed companies, lenders and creditors to evaluate, restructure and align operations and resources. Whether you’re looking to revitalize stagnant operations, reduce costs to enhance long-term value, shed non-essential operations or realign capital structures, our expert team can help.
Dacarba LLC is a wholly owned subsidiary of Opportune LLP, a preeminent provider of financial advisory and consulting services to the energy industry. For more information about Dacarba LLC, CLICK HERE.