Bruin E&P Partners and its subsidiaries, an exploration and production company with assets in the Williston Basin in North Dakota, has the support of more than two-thirds of all its funded debt creditors, as well as its current equity holders, for a restructuring transaction that will eliminate more than $840 million of the company’s funded debt.
Kirkland & Ellis is serving as legal counsel PJT Partners is serving as financial advisor, AlixPartners is serving as restructuring advisor and Jackson Walker is serving as local legal counsel to Bruin E&P Partners.
The restructuring transaction will be implemented through a prepackaged Chapter 11 process that will be financed by a debtor-in-possession financing facility of $230 million. The Bruin E&P Partners restructuring transaction, through the DIP financing and cash from operations, is expected to provide Bruin E&P Partners with the platform to continue near term operations.
Bruin E&P Partners also secured committed exit financing of $230 million and will emerge from Chapter 11 with approximately $230 million in funded debt.
Bruin E&P Partners expects to file a number of customary motions to allow the company to continue to pay employee wages and health and welfare benefits, and to continue its accretive relationships with its suppliers and other business partners. Bruin E&P Partners’ business will continue to operate as normal for the duration of the restructuring. Bruin E&P Partners will continue to operate in accordance with applicable laws, rules and regulations, including inspection and maintenance as required pursuant to applicable environmental regulations.
The company commenced solicitation of votes from its equity holders, lenders, and bondholders in support of a prepackaged Chapter 11 plan of reorganization. The company commenced the prepackaged Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of Texas.. The company’s support from its equity and creditor constituencies is memorialized in a restructuring support agreement. The company plans to move swiftly toward Court approval of the plan, with confirmation expected within approximately 45 days from filing.
“Bruin has been one of the premier operators in the Williston Basin over the last five years and will continue to execute high return projects during the planned short restructuring period,” Matt Steele, CEO of Bruin E&P Partners, said. “Bruin places a high value on operating safely and efficiently through responsible development. This transaction will allow Bruin to continue to support our partners, landowners, leaseholders, employees, contractors and the communities in which we work and live.”