US-based E&P company Goodrich Petroleum Corp. reached an agreement with lenders based on a prepackaged plan to file for Chapter 11 bankruptcy protection by 15 April 2016..
The prepackaged plan, which aimed to secure support from all lenders prior to filing for Chapter 11 bankruptcy, fell short of desired participation levels. As on 31 March 2016, the company received support from its unsecured lenders totaling 61% of the 95% needed to implement its debt-for-equity exchange offer.
The new plan of re-organization aims to give its second-lien lenders an equity stake in the re-organized company through its ongoing debt-for-equity exchange offer. The company has extended its offer to 8 April 2016.
Separately, Goodrich announced earlier in March 2016, that it would delay the filing of its annual report for 2015 citing a material loss that auditors had detected which would affect the company’s ability to operate as a going concern.
U.S-bases energy firm Sandridge Energy, in a regulatory filing, considered the possibility of filing for a Chapter 11 bankruptcy on being negatively impacted by falling energy prices.
The company is actively looking to restructure its debt of $3.6bn by hiring law firm Kirkland & Ellis and investment bank Houlihan Lokey.
Spain-based renewable energy company Abengoa S.A.’s subsidiary Abeinsa Holding, along with 13 affiliated debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware (lead case number 16-10790).
The company is represented by R. Craig Martin of DLA Piper. Documents filed with the court state that global slowdown, distress within the energy sectors and a over leveraged balance sheet led to the filing of bankruptcy.
Parent company Abengoa S.A. itself filed for Chapter 15 protection on 28 March 2016. The company had received backing from 75% of its lenders, 15.04 % more than the required threshold of 60%, to approve its restructuring plan.
Abengoa would present, as part of its restructuring, a plan to file Chapter 11 bankruptcy for all its affiliates in the United States and Chapter 15 for all affiliates to apply for creditor protection and a homologation of the agreement in the US. This move would permit the company to complete the Financial Viability Plan that has already been accepted by lenders.
Further, Abeinsa Holding’s Chapter 11 filing follows the 24 February 2016 Chapter 11 filing of Abengoa Bioenergy U.S. Holding and affiliated debtors. Abeinsa Holding’s Chapter 11 petition indicates total assets greater than $1bn.