Denbury Resources Inc. and its subsidiaries have filed petitions for reorganization under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the Southern District of Texas to implement its prepackaged plan to eliminate $2.1 billion of bond debt, consistent with terms of its restructuring support agreement (RSA).
The RSA was entered into with funded debtholders holding 100% of the company’s revolving credit facility loans, some 67.2% of its second lien notes, and about 70.8% of its convertible notes.
The company’s existing lenders are providing a debtor-in-possession (DIP) revolving loan that will “roll” into an exit facility with up to $615 million in availability. Upon court approval, this new financing and the cash generated from Denbury’s ongoing operations are expected to be sufficient to support the business during the court-supervised process.
