Oklahoma City-based Chaparral Energy announces bankruptcy restructuring deal, CEO retirement
Chaparral Energy LLC said Wednesday it had reached an agreement with its bondholders and lenders to emerge from bankruptcy as the company also announced the retirement of its founder and top executive.
Oklahoma City-based Chaparral said the agreement, which requires bankruptcy court approval, would convert $1.2 billion in outstanding debt to equity. The company filed for Chapter 11 bankruptcy reorganization in May. A hearing on the plan has been requested for Dec. 7.
Chaparral also said Chairman and CEO Mark Fischer, who founded the company in 1988, would retire at the end of the year. He will be succeeded by Earl Reynolds, president and chief operating officer.
Under the proposed restructuring agreement, unsecured bondholders and general unsecured creditors will own 100 percent of the company's ownership interest. If approved, the agreement will provide a $225 million reserve-based lending facility that matures in 2020. The new capital structure includes another $250 million drawn on a four-year term loan. It will require $50 million of new equity in a rights offering.
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