Davis Polk has served as lead counsel to Chaparral Energy, Inc. and its subsidiaries throughout their chapter 11 proceedings. On October 1, 2020, the U.S. Bankruptcy Court for the District of Delaware confirmed Chaparral’s Plan of Reorganization, which was overwhelmingly supported by holders of the company’s prepetition loans under its reserve-based revolving credit facility and prepetition unsecured noteholders. On October 14, 2020, Chaparral emerged from bankruptcy, completing its financial restructuring.
Upon emergence from bankruptcy, Chaparral’s old common stock was cancelled and Chaparral issued new shares of common stock and warrants, in each case pursuant to the Plan of Reorganization. The company’s prepetition unsecured noteholders were issued 100% of the reorganized company’s common stock, subject to dilution, and holders of the old common stock were provided a distribution of warrants and/or cash. In conjunction with its emergence from chapter 11, convertible notes were issued pursuant to a $35 million rights offering to Chaparral’s prepetition noteholders and Chaparral has entered into an amended and restated credit reserve-based revolving credit facility.
Davis Polk also advised the company on the settlement of a longstanding litigation related to a royalty class action, which settlement will be implemented through the chapter 11 cases.
Chaparral is a private independent oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma. The company is involved in the acquisition, exploration, development, production and operation of oil and natural gas properties, with a focus in Oklahoma’s hydrocarbon rich Mid-Continent Region.
The Davis Polk restructuring team includes partners Damian S. Schaible and Angela M. Libby and associates Jacob Weiner and Paavani Garg. The litigation team includes partner James I. McClammy. The corporate team includes partner Nicholas A. Kronfeld and associate Yoojin Nairn-Kim. The finance team includes partner Kenneth J. Steinberg and associate Phoebe Jin. The derivative team includes partner Mark J. DiFiore. The mergers and acquisitions team includes partner Evan Rosen and associate Jeffrey Scharfstein. All members of the Davis Polk team are based in the New York office.