Oil Driller Chaparral Files for Bankruptcy Protection
- Energy bankruptcies have multiplied during the pandemic
- Company plans $300 million debt cut and new money raising
This article is for subscribers only.
Chaparral Energy Inc.’s filed for bankruptcy protection for the second time in four years, paving the way for bondholders to take control of the Oklahoma driller in the aftermath of sluggish oil prices.
The company filed for Chapter 11 in U.S. Bankruptcy Court in Delaware as it seeks to restructure its balance sheet and raise new money. Almost 80% of first-lien lenders and bondholders gave their support for a proposal to swap $300 million of unsecured notes into equity, raise a $175 million reserves-based exit facility and issue $35 million of convertible notes, Chaparral said in a statement on Monday.