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Denbury Resources Enters into Restructuring Support Agreement

Gasoil News - Published on Tue, 11 Aug 2020

Image Source: Denbury Resources
Denbury Resources Inc announced that it has entered into a Restructuring Support Agreement with funded debt holders holding 100% of revolving credit facility loans, approximately 67.2% of second lien notes and approximately 70.8% of convertible notes for a pre-packaged plan that will eliminate the Company’s USD 2.1 billion of bond debt. To implement the balance sheet restructuring contemplated by the RSA, the Company is soliciting approval of the “pre-packaged” plan and expects to file voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas on or before July 30, 2020.

Denbury expects to continue normal operations throughout the Court-supervised process. Pursuant to their commitment letter, the Company’s existing lenders will provide a debtor-in-possession revolving loan that will “roll” into an exit facility with up to USD 615 million in availability. Following Court approval, the Company expects this financing, together with cash flow from operations, to support the business during the Court-supervised process. Denbury will continue to evaluate the operating environment and make adjustments, as necessary, to adapt to the impact of COVID-19, OPEC+ actions and other factors affecting its business.

The Company intends to seek Court approval to pay suppliers in full under normal terms for goods and services provided on or after the filing date. Under terms of the “pre-packaged” plan, which is subject to Court approval, general unsecured pre-petition claims will also be paid in full in the ordinary course.

Denbury is an independent oil and natural gas company with operations focused in two key operating areas: the Gulf Coast and Rocky Mountain regions.

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Posted By : Yogender Pancholi on Tue, 11 Aug 2020
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