Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Chaparral Energy Inc. files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: July 6, 2016
Key Contacts
Back
Chaparral Energy files Chapter 11
Chaparral Energy Inc., one of the largest oil and gas companies and third-biggest enhanced oil recovery operator in the U.S., has announced that it filed for Chapter 11 bankruptcy protection. According to The Wall Street Journal, Chaparral Energy, like many of its peers became the latest victim of the collapse of energy prices.
Chaparral Energy falls into insolvency
In its bankruptcy documents, the company cited the fact that it had recently failed to make interest payments to its senior bondholders. Following its 30-day grace period, it defaulted on its bonds, which meant that it owed all of its $1.6 billion debt. It currently owes $525.9 million in 7.625 percent senior notes due in 2022 to bondholders, along with $384 million in 8.25 percent senior notes owed in 2021 and $298 million in 9.875 percent owed in senior notes by 2020.
The company also stated in court documents that its financial struggles began in February after it borrowed all of the remaining funds under a $548 million credit agreement from 2010. As this move failed to build sustainable liquidity for Chaparral Energy, the company’s debts steadily grew from there on.
The reorganization plan for Chaparral Energy
Chaparral Energy stated in its initial bankruptcy plan that it plans to negotiate a debt-for-equity swap with most, if not all, of its lenders and bondholders to eliminate $1.2 billion in debt. If the company can reach an agreement, it intends to restructure its operations to emerge from bankruptcy as a viable business.
In the meantime, Chaparral will continue operations through the reorganization process.
The significance of the Chaparral Energy filing
Prior to recent Chapter 11 bankruptcy filings in the energy sector, there have been 67 companies that have sought bankruptcy protection since 2015.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
Otherwise, for more articles regarding oil companies filing for bankruptcy, check out:
- Ultra Petroleum files for Chapter 11 Bankruptcy Protection
- Goodrich Petroleum Corp. Files for Chapter 11 Bankruptcy Protection
- Venoco files for Chapter 11 Bankruptcy Protection
- Practices: Bankruptcy & Creditors' Rights
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Chaparral Energy Inc. files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Chaparral Energy files Chapter 11
Chaparral Energy Inc., one of the largest oil and gas companies and third-biggest enhanced oil recovery operator in the U.S., has announced that it filed for Chapter 11 bankruptcy protection. According to The Wall Street Journal, Chaparral Energy, like many of its peers became the latest victim of the collapse of energy prices.
Chaparral Energy falls into insolvency
In its bankruptcy documents, the company cited the fact that it had recently failed to make interest payments to its senior bondholders. Following its 30-day grace period, it defaulted on its bonds, which meant that it owed all of its $1.6 billion debt. It currently owes $525.9 million in 7.625 percent senior notes due in 2022 to bondholders, along with $384 million in 8.25 percent senior notes owed in 2021 and $298 million in 9.875 percent owed in senior notes by 2020.
The company also stated in court documents that its financial struggles began in February after it borrowed all of the remaining funds under a $548 million credit agreement from 2010. As this move failed to build sustainable liquidity for Chaparral Energy, the company’s debts steadily grew from there on.
The reorganization plan for Chaparral Energy
Chaparral Energy stated in its initial bankruptcy plan that it plans to negotiate a debt-for-equity swap with most, if not all, of its lenders and bondholders to eliminate $1.2 billion in debt. If the company can reach an agreement, it intends to restructure its operations to emerge from bankruptcy as a viable business.
In the meantime, Chaparral will continue operations through the reorganization process.
The significance of the Chaparral Energy filing
Prior to recent Chapter 11 bankruptcy filings in the energy sector, there have been 67 companies that have sought bankruptcy protection since 2015.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
Otherwise, for more articles regarding oil companies filing for bankruptcy, check out:
- Ultra Petroleum files for Chapter 11 Bankruptcy Protection
- Goodrich Petroleum Corp. Files for Chapter 11 Bankruptcy Protection
- Venoco files for Chapter 11 Bankruptcy Protection