Bonanza Creek Energy emergence from chapter 11 bankruptcy
Davis Polk has served as lead counsel to Bonanza Creek Energy, Inc. and its subsidiaries throughout their chapter 11 proceedings. On April 7, 2017, the U.S. Bankruptcy Court for the District of Delaware confirmed Bonanza Creek’s Plan of Reorganization after Bonanza Creek obtained the unanimous support of the company’s prepetition unsecured noteholders, the lenders under its prepetition secured credit facility and both of the company’s crude oil purchase and sale counterparties. Following a two-day contested confirmation hearing, Bonanza Creek secured the support of an objecting ad hoc group of equity holders pursuant to a settlement agreement. On April 28, 2017, Bonanza Creek emerged from bankruptcy, completing a successful restructuring.
Upon emergence from bankruptcy, Bonanza Creek’s old common stock was cancelled and Bonanza Creek issued new shares of common stock and warrants, in each case pursuant to the Plan of Reorganization. Pursuant to the Plan of Reorganization, the company’s prepetition unsecured noteholders were issued nearly all of the new shares of common stock, with certain holders of the old common stock receiving a small percentage of the new common stock and warrants to purchase additional equity. Additional common stock was issued pursuant to a $200 million rights offering to certain of Bonanza Creek’s prepetition noteholders and a $7.5 million equity commitment made by the members of the ad hoc group of equity holders. The common stock is listed on the New York Stock Exchange under the symbol “BCEI.”
In conjunction with its emergence from chapter 11, Bonanza Creek has entered into an amended and restated reserve-based revolving credit facility in an aggregate original commitment amount of approximately $191.67 million, of which the entire amount is currently undrawn and available.
Bonanza Creek is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The company’s assets and operations are concentrated primarily in the Rocky Mountain region in the Wattenberg Field, focused on the Niobrara and Codell formations, and in southern Arkansas, focused on the oil-rich Cotton Valley sands.
The Davis Polk restructuring team included partners Marshall S. Huebner and Brian M. Resnick and associate Adam L. Shpeen. The litigation team included partners Elliot Moskowitz and James I. McClammy and associates Lara Samet Buchwald and Andrew S. Gehring. The finance team included partner Jinsoo H. Kim. The corporate and capital markets team included partners Michael Davis and Byron B. Rooney. All members of the Davis Polk team are based in the New York office.