Goodrich Petroleum Corp. said Oct. 12 it successfully completed its reorganization agreement and emerged from bankruptcy with new capital ready for deployment in the Haynesville Shale.
In April, Goodrich filed for Chapter 11 bankruptcy protection in the Southern District of Texas in Houston to sort out its financial affairs. The company’s plan was to eliminate about $400 million in debt from its balance sheet through a deal it worked out with lenders prior to the filing.
The Houston-based company said it worked "constructively" with its creditors and other stakeholders to emerge from bankruptcy with the same assets and substantially reduced total long-term debt and cost structure.
As part of its reorganization plan, Goodrich received $40 million from issuing convertible second lien senior secured notes due 2019. The new capital was used to pay down half of its outstanding borrowings under its previous senior credit facility to $20 million. The company also has $20 million in cash from the new capital to fund initial development of its Haynesville Shale drilling program.
In addition, Goodrich entered a new senior secured credit facility led by Wells Fargo Bank, which currently as an outstanding balance of $20 million.
Goodrich's existing common stock has been cancelled in accordance with the reorganization. The company's new common stock will be will be issued to the second lien notes claim holders, unsecured notes claim holders, general unsecured claim holders and management.
The company said it expects its stock will be traded on the OTC Markets marketplace within two to three weeks, with plans to list on a major exchange at a later date.
Goodrich has focused on developing the Tuscaloosa Marine Shale (TMS) since 2014 while selling off various assets, including the 2015 divestiture of its oil production in the Eagle Ford. It retains 17,000 net acres in the Eagle Ford. The company also has assets in the Haynesville Shale in Northeast Texas and Northwest Louisiana.
Lazard was financial adviser and Vinson & Elkins LLP was legal counsel in connection with the bankruptcy process.
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