Whiting Petroleum Corp., Denver, along with certain subsidiaries commenced voluntary Chapter 11 cases in the US bankruptcy court for the Southern District of Texas to facilitate restructuring.
The company has more than $585 million of cash on its balance sheet and will continue to operate its business in the normal course without material disruption to its vendors, partners, or employees, it said Apr. 1, and expects to have sufficient liquidity to meet its financial obligations during the restructuring without the need for additional financing.
The company has reached an agreement in principle with certain holders of its 1.25% convertible senior notes due 2020, 5.750% senior notes due 2021, 6.250% senior notes due 2023, and 6.625% senior notes due 2026 regarding a term sheet that contemplates a comprehensive restructuring.
On Mar. 16, Whiting noted plans to reduce its 2020 capital budget by $185 at the midpoint of prior guidance to $400-435 million with the expectation to drop one rig and one completion crew in April (OGJ Online, Mar. 16, 2020).