Bankruptcy Rebound? Oil, Gas Companies Bounce Back from Chapter 11
Houston-based Goodrich Petroleum Corp. has emerged from bankruptcy with the same assets in place, a significantly improved capital structure and substantially less long-term debt, the company said in a statement.
Goodrich had sought bankruptcy protection in April to eliminate close to $400 million in debt. It was one of dozens of oil and gas companies that succumbed to the market downturn from low commodity prices that left the sector roughly $17 billion in debt.
As part of its reorganization plan, Goodrich received $40 million in new capital through the issuance of second lien senior secured notes due in 2019. Half of it was earmarked to pay down its outstanding debt from a previous credit facility. The remaining $20 million is targeted for the initial development of the company’s Haynesville shale drilling plan, according to the statement.
Goodrich is the latest exploration and production (E&P) company in recent weeks to emerge on the scene post-bankruptcy. Last week, Oklahoma-based SandRidge Energy Inc. returned to public trading on the New York Stock Exchange with $525 million in total liquidity. And Pacific Exploration & Production Corp. is on track to complete its restructuring this month, according to a Wall Street Journal story.
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