Denbury Resources Inc. DNA
He said on Wednesday that he had reached a pre-arranged restructuring plan with creditors that would eliminate $ 2.1 billion in bond debt. Oil and gas company Plano, Tx., Will apply for Chapter 11 protection on Thursday. The company said it has an agreement with debt holders who own 100% of revolving credit loans, about 67.2% of subordinated promissory notes and about 70.8% of convertible bonds. The company expects to operate as normal during the Chapter 1
1 process and has an existing revolving loan from the borrower that will be utilized up to $ 615 million. “Recently, our entire industry has been hit hard by the global destruction of oil demand caused by the COVID-19 pandemic, which has led to record low oil prices and abrupt changes in energy market conditions,” said CEO Chris Kendall in a statement. According to him, Denbury has taken a number of measures to preserve liquidity, reduce capital expenditure and general and administrative expenses, and optimize operations. Shares traded 24 cents rose 16% ahead of the news.