On June 2, 2016 Warren Resources, Inc. and certain of its affiliates (collectively, “Warren” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.
According to the declaration of Warren’s Chief Executive Officer and Chief Restructuring Officer, James A. Watt (the “Watt Declaration”), Warren has entered into a restructuring support agreement with its first-lien lenders and holders of a majority of its senior notes. The agreement contemplates a plan that would include, amongst others, a debt- for-equity conversion. See Watt Declaration at 6.
Debtors are independent oil and natural gas exploration and production companies engaged in the acquisition, exploration, development and production of domestic onshore crude oil and gas reserves. Debtors’ operations are primarily focused on waterflood oil recovery operations in the Wilmington Field, California and the North Wilmington Unit outside of Los Angeles and in the Marcellus shale in northeastern Pennsylvania. See Watt Declaration at 8.
Debtors’ liabilities total approximately $486.3 million in funded debt obligations which include: (i) $247.9 million pursuant to a 2015 Lien Credit Agreement with Wilmington Trust, National Association as administrative agent; (ii) $56.9 million pursuant to a 2015 Second Lien Credit Agreement with Cortland Capital Market Services, LLC, as administrative agent; (iii) $1.6 million outstanding under convertible secured debentures; and (iv) $179.9 million in unsecured senior notes. See Watt Declaration at 54-57.
The Debtors cases are jointly administered under the lead bankruptcy case In re Warren Resources, Inc., et al., Case No. 16-32760.
A copy of the Watt Declaration can be accessed here: Download Watt Declaration.
For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney.
For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.