Chaparral Energy Successfully Emerges from Chapter 11; Company Eliminates $1.2 Billion of Outstandin
OKLAHOMA CITY, March 21, 2017 (GLOBE NEWSWIRE) -- Chaparral Energy announced today that it has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy protection. The company, whose financial reorganization plan was confirmed by the U.S. Bankruptcy Court of Delaware on March 10, converted $1.2 billion of pre-petition debt to equity and eliminated approximately $100 million of annual interest expense.
“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 Chief Executive Officer K. Earl Reynolds. “I would also like to express our gratitude to our vendors, contractors and royalty owners for their patience and support, as well as our outstanding employees, whose tireless efforts and commitment to excellence allowed us to complete this process without any interruption to our day-to-day operations.”
Chaparral’s 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 an additional $150 million term loan. Both the revolver and term loan will mature in four years. The company also received an additional $50 million in cash after issuing equity from a rights offering. Chaparral currently has more than $100 million in liquidity.
“Our emergence marks a new and prosperous time in Chaparral’s storied history,” said Reynolds. “Our balance sheet now provides the stability and opportunity needed to focus our operations on developing our approximate 100,000 net acre position in the STACK Play. With more than 5,000 potential STACK locations and one of the industry’s lowest operating cost structures, we are well-positioned to generate significant returns for Chaparral and our investors in the near- and long-term future.”
Board of Directors In accordance with its restructuring plan, Chaparral’s newly appointed independent, seven-member board of directors also became effective today. The company’s new board includes Reynolds, Douglas Brooks, Matt Cabell, Robert Heinemann, Sam Langford, Ken Moore and Gysle Shellum.
Chaparral has been advised through this process by financial advisor Evercore, restructuring advisor Opportune LLP and the law firm of Latham & Watkins LLP. Additional information is available on the company’s website chaparralenergy.com.