Business
Oasis Petroleum Takes Action to Strengthen Balance Sheet with the Support of its Lenders and an Ad Hoc Committee of Noteholders
Restructuring Support Agreement ("RSA") and Consensual Prepackaged Plan to be Implemented through Voluntary Chapter 11 Process; Restructuring to Reduce Debt
About this update from Chord Energy Corporation
[{"type":"text","content":"Restructuring Support Agreement (\"RSA\") and Consensual Prepackaged Plan to be Implemented through Voluntary Chapter 11 Process; Restructuring to Reduce Debt by $1.8 Billion\n Under the RSA, Oasis Petroleum is Expected to Pay Royalty Interest, Working Interest and Surface Owners in Full, Including Pre-Petition Balances in the Ordinary Course; Vendors and Suppliers also Expected to be Paid in Full\n Oasis Midstream Partners, a Master Limited Partnership with Independent Midstream Operations, and All Subsidiaries in which It Owns an Equity Interest, Are NOT Included in Chapter 11 Filing\n Oasis Petroleum has Secured a Commitment for $450 Million in Debtor-in-Possession Financing; Oasis Petroleum has Sufficient Liquidity to Maintain Operations\n Oasis' Upstream Operations and Production Expected to Continue as Normal Throughout Restructuring Process\n\n\nHOUSTON, Sept. 30, 2020 /PRNewswire/ -- Oasis Petroleum Inc. (NASDAQ: OAS) (\"Oasis Petroleum\" or the \"Company\") today announced that it has entered into a restructuring support agreement (the \"RSA\") with substantially all of its lenders in Oasis Petroleum's revolving credit facility and holders of 52% of the aggregate principal amount of the Company's bonds on a comprehensive \"pre-prepackaged\" restructuring plan (the \"Plan\") to strengthen the Company's balance sheet and significantly reduce its debt. \nTo implement the Plan, Oasis Petroleum and certain of its affiliates today filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the \"Court\"). Through this financial restructuring, Oasis Petroleum intends to reduce its total indebtedness by $1.8 billion, representing 100% of its senior unsecured notes and senior unsecured convertible notes. Upon emergence, the Company expects to have approximately $340 million of borrowings under the Oasis Petroleum credit facility. It is expected that the restructuring process will be completed on an accelerated timeframe allowing for an emergence in November 2020, subject to Court approval.\nOasis Midstream Partners (NASDAQ: OMP), an independent legal entity operated as a Master Limited Partnership, and all subsidiaries in which it owns an equity interest are not included in Oasis Petroleum's Chapter 11 proceedings. \n...