Halcón Resources filed voluntary petitions under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware in Wilmington to pursue a pre-packaged plan of reorganization. Under the restructuring plan, the company will eliminate approximately $1.8 billion in long-term debt and will reduce annual interest expense by more than $200 million.

The bankruptcy filing follows Halcón’s successful solicitation for support of the restructuring plan from the company’s 13% third lien notes due 2022, its three tranches of senior unsecured notes. This solicitation resulted in overwhelming support for the restructuring plan, and the company received acceptances from more than 95% in number and over 99% in aggregate amount of claims and interests in each affected stakeholder class that voted on the plan. In addition, as previously announced, Halcón also reached an agreement with holders of more than 51% in aggregate principal amount of its 8.625% and 12% second lien notes due 2020 and 2022 regarding certain amendments to the indentures governing such notes in exchange for the commitment of such holders to support the restructuring plan.

On July 25, 2016 the company partially drew down its revolving credit facility and therefore currently has $359 million in cash on hand.

Halcón received a commitment from certain lenders in its existing reserve-based credit facility, led by JPMorgan and Wells Fargo, to provide a $600 million debtor in possession credit facility with $500 million of availability once the interim order approving the DIP is received from the bankruptcy court. Halcon plans to repay outstanding amounts due on its existing revolver once the DIP is approved by the court. The DIP facility will convert into a reserve-based revolving credit facility with availability of $600 million upon emergence from bankruptcy. Halcón’s current cash on hand in addition to the commitment for the DIP and exit facility provides the company with ample liquidity both during and after the restructuring process.

The restructuring plan is expected to conclude in approximately 45 to 60 days. The company plans, subject to approval by the court, to continue to pay vendors, royalty owners and other parties in ordinary course throughout the bankruptcy process.