Jefferies and Opportune are acting as financial advisors and Gibson, Dunn & Crutcher and Haynes and Boone are acting as legal counsel to Rosehill Resources, which commenced voluntary Chapter 11 cases under the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. The cases are pursuant to the terms of a previously announced restructuring support agreement (RSA) between Rosehill, the lenders under Rosehill’s revolving first lien credit facility, holders of Rosehill’s second lien notes and Rosehill’s series B preferred stock, and Tema Oil and Gas Company, as the holder of approximately 66.8% of the equity interests in the company and 35.2% of the equity interests in Rosehill Operating and party to Rosehill’s tax receivable agreement (collectively, the consenting creditors).
In connection with the Chapter 11 Cases, Rosehill filed customary motions authorizing it to proceed with its operations in the ordinary course, including to enter into a $17.5 million junior convertible secured debtor-in-possession delayed-draw term loan facility and use cash collateral. Rosehill currently expects that the DIP facility will provide sufficient liquidity to meet its financial obligations during the duration of the Chapter 11 cases. Rosehill expects to continue to operate its business during the Chapter 11 cases without material disruption to its vendors, partners or employees.
As previously announced, under the RSA, Rosehill and the consenting creditors reached an agreement on the terms of a prepackaged plan of reorganization. Following consummation of the plan, Rosehill’s equity will be owned solely by certain of the consenting creditors and holders of the company’s preferred stock, and holders of general unsecured claims, including the company’s trade creditors and vendors, will pass through the Chapter 11 cases with their claims unimpaired by the bankruptcy and being satisfied in full. Additionally, pursuant to the plan, all of the common equity of the company will be cancelled and receive no recovery.
Rosehill Resources is an independent oil and gas exploration company with assets positioned in the Delaware Basin portion of the Permian Basin.
