Chaparral Energy emerges from Chapter 11; eliminates $1.2 billion in debt, $100 million in annual interest expense
OKLAHOMA CITY -- Chaparral Energy announced today that it has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy protection. The company, whose financial reorganization plan was confirmed by the U.S. Bankruptcy Court of Delaware on March 10, converted $1.2 billion of pre-petition debt to equity and eliminated approximately $100 million of annual interest expense.
Chaparral’s new capital structure includes its cash on hand, as well as a reserve based lending facility with an initial borrowing base of $225 million and an additional $150 million term loan. Both the revolver and term loan will mature in four years. The company also received an additional $50 million in cash after issuing equity from a rights offering. Chaparral currently has more than $100 million in liquidity.
“Our balance sheet now provides the stability and opportunity needed to focus our operations on developing our approximate 100,000 net acre position in the STACK Play," CEO K. Earl Reynolds said. "With more than 5,000 potential STACK locations and one of the industry’s lowest operating cost structures, we are well-positioned to generate significant returns for Chaparral and our investors in the near- and long-term future.”