Halcon Resources Files for Ch. 11 Bankruptcy
Houston-based Halcon Resources Corporation has filed for pre-packaged Chapter 11 bankruptcy, the second time in just over three years.
The company announced the filing on Thursday and said the reorganization plan would eliminate $750 million in debt and reduce its yearly interest expense by more than $40 million.
Halcon’s bankruptcy announcement follows years of struggles dating back to the onset of the oil and gas industry’s most recent downturn. The company has curbed drilling, made multiple cuts to its spending and lost multiple members of its leadership team.
Halcon previously sought bankruptcy protection in May 2016 and settled its debts and emerged from bankruptcy within two months after that.
The current plan’s terms provide that holders of the company’s $625 million outstanding 6.75 percent senior notes will receive 91 percent of the common stock of reorganized Halcon and existing common shareholders will receive 9 percent of the new common shares.
Halcon expects to emerge from bankruptcy within 60 days.
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