Bonanza Creek files prepackaged Chapter 11 to equitize notes
Bonanza Creek Energy, Inc. filed Chapter 11 in Delaware with five affiliated debtors, reporting $1.224 billion of assets, $1.140 billion of liabilities, and 1,000-5,000 creditors as of September 30, 2016 source filing. The Denver-based E&P company operated in the Wattenberg Field in Colorado and the Dorcheat Macedonia/McKamie Patton fields in southern Arkansas, with about 235 employees and no union workforce source filing.
The filing was built around a prepackaged restructuring support agreement signed December 23, 2016. Bonanza entered Chapter 11 with roughly $1.0 billion of funded debt, including $191.7 million outstanding under a KeyBank-led RBL facility, $500 million of 6.75% senior notes due 2021, and $300 million of 5.75% senior notes due 2023 source filing. The proposed restructuring would discharge more than $850 million of unsecured note debt and add a $200 million rights offering backstopped by noteholders, giving existing equity 4.5% of new common stock plus warrants for 7.5% at a $1.45 billion equity-value strike source filing.