On July 27, 2016, Halcon Resources Corporation and certain of its affiliates (collectively, “Halcon” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.
According to the declaration of Halcon’s President Stephen W. Herod (the “Herod Declaration”), Halcon has entered into a restructuring support agreement with holders of more than 85% of the total aggregate amount of each impaired voting class of creditors. The agreement contemplates a plan that would, amongst other things, swap $1.8 billion debt for equity in the reorganized Halcon. See Herod Declaration at 5-8.
Halcon is an independent oil and natural gas exploration and production company engaged in the acquisition, production, exploration, and development of onshore liquids-rich oil and natural gas reserves in the United States, primarily in the Bakken and Three Forks formations in North Dakota, and the Eagle Ford formation in East Texas. Debtors have leasehold working interests in approximately 1,500 oil and gas wells, and own interests in approximately 465,000 net acres’ (excluding acreage held by a non-Debtor affiliate). See Herod Declaration at 11-12.
Debtors’ liabilities total approximately $3.22 billion in funded debt obligations which include: (i) $450.0 million pursuant to a 2012 Revolving Credit Facility with JPMorgan Chase Bank as administrative agent; (ii) $812.8 million Second Lien Notes with U.S. Bank National Association as trustee; (iii) $1.02 billion pursuant to 2015 Third Lien Notes with Wilmington Savings Fund Society as successor trustee; (iv) $649.9 million pursuant to 2013 Senior Unsecured Notes with U.S. Bank National Association as trustee; and (v) $289.7 million pursuant to a 2011 Securities Purchase Agreement. See Herod Declaration at 21-43.
The Debtors cases are jointly administered under the lead bankruptcy case In re Halcon Resources Corporation, et al., Case No. 16-11724.
A copy of the Herod Declaration can be accessed here: Download Herod 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/