Denbury Resources files prepackaged Chapter 11 with plan to eliminate $ 2.1 billion in bond debt

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Denbury Resources Inc. DNR,
+ 4,78%
said Wednesday it has filed for Chapter 11 bankruptcy protection as part of a prepackaged plan with its creditors that will allow it to eliminate $ 2.1 billion in bond debt. The Plano, Tx-based oil and gas company said it has reached an agreement with debt holders who hold 100% of the revolving credit facility loans, about 67.2% of the senior notes and about 70.8%. % of convertible bonds. The company expects to operate normally during the Chapter 11 process and has a revolving debtor loan in possession that will convert into an exit facility of up to $ 615 million. “Recently, our entire industry has been heavily impacted by the destruction of global oil demand caused by the COVID-19 pandemic, resulting in record oil prices and rapid changes in energy market conditions,” said the chief executive Chris Kendall in a statement. Denbury has taken many steps to preserve liquidity, reduce capital and general and administrative expenses and optimize operations, he said. The stock, which is trading at 24 cents, rose 16% before the news went to market.

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