Halcon Resources to Restructure Through Chapter 11 Filing

Reuters

May 18 (Reuters) - Oil and gas company Halcon Resources Corp said it would file for a prepackaged Chapter 11 bankruptcy to restructure its balance sheet and eliminate $1.8 billion in debt.

A near-60 percent fall in crude prices has eroded cash flows at oil producers, forcing them to restructure to cut debt and reduce interest payments.

More than 60 U.S. oil producers have so far sought bankruptcy protection.

Halcon said it had reached an agreement with some debt holders and plans to seek the support of additional lenders.

The company's restructuring plan will also eliminate about $222 million of preferred equity, and reduce the company's annual interest payments by more than $200 million.

PJT Partners is the company's financial adviser and Weil, Gotshal & Manges LLP is the legal counsel, while Alvarez & Marsal is the restructuring adviser.

(Reporting by Vishaka George in Bengaluru; Editing by Saumyadeb Chakrabarty)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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