Alvarez & Marsal is acting as restructuring advisor and Jeffrey S. Stein of Stein Advisors is acting as chief restructuring officer for Whiting Petroleum, which entered into a restructuring support agreement and filed for a consensual Chapter 11 plan of reorganization.
The restructuring support agreement is between Whiting Petroleum and certain holders of its 1.25% convertible senior notes due 2020, 5.750% senior notes due 2021, 6.250% senior notes due 2023 and 6.625% senior notes due 2026. The company filed its consensual Chapter 11 plan of reorganization and a related disclosure statement with the United States Bankruptcy Court for the Southern District of Texas.
Moelis & Company is acting as financial advisor for Whiting Petroleum. Kirkland & Ellis and Jackson Walker are acting as legal advisors to the company. PJT Partners is acting as financial advisor for the ad hoc committee of noteholders and Paul, Weiss, Rifkind, Wharton & Garrison and Porter Hedges are acting as legal advisors.
The plan of reorganization outlines a proposed path to strengthen the company’s balance sheet, reducing debt and improving liquidity in order to emerge from bankruptcy as a financially stronger company in accordance with the terms of the restructuring agreement.
The restructuring agreement and and the plan of reorganization provide for de-leveraging of the company’s capital structure by more than $2.3 billion through the exchange of all of the senior notes as well as certain other general unsecured claims for 97% of the new equity of the reorganized company to be issued pursuant to the plan of reorganization. The restructuring agreement and and the plan of reorganization also provide for payment in full of the company’s revolving credit facility, other secured creditors, tax and other priority claimants, employees, working interest partners and certain trade creditors (other than litigation and rejection damages claimants), and for existing equity holders to receive 3% of the new equity of the reorganized company and warrants to purchase additional equity of the reorganized company. Consummation of the plan will be subject to confirmation by the court in addition to other conditions to be set forth in the plan of reorganization, the restructuring agreement and related transaction documents.
“We are pleased to have secured a highly constructive RSA with certain holders of our senior notes,” Bradley J. Holly, Whiting Petroleum’s chairman, president and CEO, said. “Through the proposed terms of the plan of reorganization, we believe a right-sized balance sheet will enable us to capitalize on our enhanced cost structure, high-quality asset base and successfully compete in the current environment.”
Whiting Petroleum is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain region of the United States.