Company Website:
http://www.midstatespetroleum.com
TULSA, Okla. -- (Business Wire)
Midstates Petroleum Company, Inc. and Midstates Petroleum Company LLC
(together, “Midstates” or the “Company”) (OTC PINK: MPOY) today
announced that they have filed voluntary petitions for relief under
Chapter 11 of the United States Bankruptcy Code in the United States
Bankruptcy Court for the Southern District of Texas. The Chapter 11
filing will facilitate a pre-arranged restructuring of the Company’s
consolidated balance sheet through a reorganization plan. The Company
has entered into a Plan Support Agreement (“PSA”) with its lenders under
the Company’s reserve-based revolving credit facility representing
approximately 80% in principal amount of its first lien debt, along with
certain other creditors holding approximately 74% in principal amount of
the Company’s second lien debt and approximately 77% in principal amount
of the Company’s third lien debt. Among other things, the PSA
contemplates (i) the permanent pay-down of $82 million of the Company’s
first lien debt and a $170 million credit facility upon emergence, in
the form of either a reserve-based revolving credit facility, a term
loan, or a combination thereof, (ii) the pay-down of up to $60 million
of the Company’s second lien debt, and (iii) the conversion into equity
of all of the Company’s remaining debt junior to the first lien debt.
Jake Brace, President and Chief Executive Officer, said, “The sharp
decline in oil prices since 2014 has put much of the oil and gas
industry in financial difficulty. While our premier Mississippian Lime
assets can achieve solid rates of return in the current price
environment, our highly leveraged balance sheet has severely limited our
ability to sustain our operations during an extended period of low
prices. We believe that by restructuring the Company’s balance sheet
now, we will be able to navigate through this downturn and create a much
stronger and more financially sound company that will have long-term
benefits for our employees, vendors, and all our stakeholders. We will
operate our business as usual throughout this process and will complete
our reorganization as quickly and cost effectively as possible.”
Midstates has filed a series of motions that, when granted, will enable
the Company to maintain business-as-usual operations throughout the
Chapter 11 process. Included in these first day motions are requests to
continue to pay employee wages, honor existing employee benefit
programs, and pay royalties to mineral owners under the terms of the
applicable agreements.
The Company has also filed motions seeking authority to pay expenses
associated with production operation activities, drilling and completion
activities, costs associated with gathering, processing, transportation
and marketing, and expenses related to joint interest billings for
non-operated properties.
Court filings as well as other information related to the Midstates
restructuring are available through the Company's claims agent, Kurtzman
Carson Consultants LLC, online at http://www.kccllc.net/midstates,
via email to Midstatesinfo@kccllc.net or
via phone call to (888) 733-1446 (toll-free in North America) or (310)
751-2635 (Outside North America).
Midstates has retained Evercore and Huron Consulting Services LLC as its
financial and restructuring advisors, respectively. The Company is
represented by Kirkland & Ellis LLP.
About Midstates Petroleum Company, Inc.
Midstates Petroleum Company, Inc. is an independent exploration and
production company focused on the application of modern drilling and
completion techniques in oil and liquids-rich basins in the onshore U.S.
The Company’s operations are currently focused on oilfields in the
Mississippian Lime play in Oklahoma and the Anadarko Basin in Texas and
Oklahoma.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160430005028/en/
Contacts:
Midstates Petroleum Company, Inc.
Jason McGlynn, Investor
Relations, 918-947-4614
Jason.McGlynn@midstatespetroleum.com
Source: Midstates Petroleum Company, Inc.
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