New Delaware Chapter 11 Filing – Bonanza Creek Energy, Inc. (NYSE: BCEI)

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Bonanza Creek Energy, Inc. (NYSE: BCEI) and seven of its affiliates filed voluntary petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware earlier this morning (Case No. 17-10015).  BCEI announced on December 23, 2016, that it had reached a comprehensive Restructuring Support Agreement with a majority of its Senior Noteholders and commenced solicitation for a prepacked plan of reorganization under Chapter 11.  The pre-petition Disclosure Statement to the pre-packaged Plan can be found here and the pre-petition Plan can be found here.  The Plan proposes to retire more than $850 million of BCEI’s Senior Notes in exchange for 95.5% of the equity in the reorganized BCEI and the opportunity to participate in a rights offering to raise an additional $200 million in new equity.  The Plan proposes to give BCEI’s existing shareholders 4.5% of the equity and 3-year warrants to acquire up to 7.5% of the equity in the Reorganized BCEI.  Prime Clerk, LLC is the proposed claims and solicitation agent.  The cases have been assigned to the Honorable Kevin J. Carey.  BCEI has issued a press release regarding its reorganization.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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