Goodrich Petroleum Delays $11M in Interest Payments

Houston-based Goodrich Petroleum is relying on a 30-day grace period to delay $11 million in March and April interest payments on senior and second-lien senior secured notes.

Goodrich has initiated an exchange offering on its outstanding unsecured notes and preferred stock for shares of the company’s common stock. Success of the exchange offering is critical to Goodrich’s survival.

“If the exchange offers are unsuccessful, we are likely to seek relief under the U.S. Bankruptcy Code,” the company said in a statement. “In such an event, we expect that the holders of our outstanding unsecured notes, shares of preferred stock and shares of our common stock would likely receive no consideration due to asset valuation in the current commodity price environment and the pledge of the company's assets as collateral to the secured noteholders.”   

Goodrich has said the voluntary restructuring would cost $1 million as opposed to a bankruptcy bill of $15 million. The E&P, which expended significant capital in the Tuscaloosa Marine Shale during its heyday, has engaged restructuring specialists Lazard and attorneys at Vinson & Elkins LLP to devise a reorganization plan to activate if the exchange doesn’t succeed.

A bankruptcy would add Goodrich to the ranks of dozens of E&Ps that have collapsed under the weight of a downturn in commodity prices of more than 70 percent during the last 18 months. In February, another shale producer, Oklahoma City-based SandRidge Energy Inc., declared it would delay interest payments and explore restructuring options.

An award-winning journalist, Deon has reported on energy, business and politics for almost 20 years. Email Deon at deon.daugherty@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Accounts Receivable Clerk
Expertise: Accounting
Location: Houston, TX
 
Financial Accounting Supervisor
Expertise: Accounting
Location: Houston, TX
 
Project Engineer
Expertise: Mechanical Engineering|Project Management
Location: Hanover, MD
 
search for more jobs

Brent Crude Oil : $48.58/BBL 3.01%
Light Crude Oil : $47.85/BBL 3.28%
Natural Gas : $2.917/MMBtu 7.63%
Updated in last 24 hours