Bonanza Creek Energy, Inc. (NYSE: BCEI) and seven of its affiliates filed voluntary petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware earlier this morning (Case No. 17-10015). BCEI announced on December 23, 2016, that it had reached a comprehensive Restructuring Support Agreement with a majority of its Senior Noteholders and commenced solicitation for a prepacked plan of reorganization under Chapter 11. The pre-petition Disclosure Statement to the pre-packaged Plan can be found here and the pre-petition Plan can be found here. The Plan proposes to retire more than $850 million of BCEI’s Senior Notes in exchange for 95.5% of the equity in the reorganized BCEI and the opportunity to participate in a rights offering to raise an additional $200 million in new equity. The Plan proposes to give BCEI’s existing shareholders 4.5% of the equity and 3-year warrants to acquire up to 7.5% of the equity in the Reorganized BCEI. Prime Clerk, LLC is the proposed claims and solicitation agent. The cases have been assigned to the Honorable Kevin J. Carey. BCEI has issued a press release regarding its reorganization.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.