Chaparral Energy Inc., Oklahoma City, voluntarily filed petitions for relief under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware in accordance with a restructuring agreement.
The agreement, entered into with certain of its funded debtholders, plans a prepackaged reorganization. The company has commenced soliciting votes to approve the plan. Holders of 78% of the loans under Chaparral’s first lien revolving credit facility and holders of 78% of its 8.75% senior notes due 2023 have agreed to vote in favor of the prepackaged plan under the terms of the agreement.
As of Aug. 14th Chaparral had cash on hand of about $32 million, which, combined with its normal operating cash flow, is expected to be sufficient to allow the company to maintain normal operations and meet its other financial commitments throughout the Chapter 11 restructuring period. Chaparral has filed a series of motions with the court that will, upon approval, allow the company to continue to pay employee wages and benefits without interruption, make royalty and working interest payments when due, and pay suppliers and vendors in full under existing terms for goods and services, among other things.
