Bonanza Creek wins court approval of restructuring support deal

By Caroline Salls

Pittsburgh, March 16 – Bonanza Creek Energy, Inc.’s restructuring support agreement was approved on Thursday by the U.S. Bankruptcy Court for the District of Delaware, according to an 8-K filed Thursday with the Securities and Exchange Commission.

As previously reported, under the agreement reached with the company’s revolving credit facility lenders, the lenders will support a Chapter 11 plan that incorporates a $191.67 million reserve-based lending exit facility.

Bonanza Creek’s first amended plan calls for each lender to be paid in full in cash and to receive a share of participation in the exit loan.

The exit facility will have a borrowing base of the same amount upon emergence from Chapter 11 and a borrowing base redetermination holiday until April 1, 2018. It also provides the Bonanza Creek debtors with a $15 million letter-of-credit sub-facility and competitive interest rates, the motion said.

As long as the company’s plan complies with the terms of the support agreement, the lenders will commit to provide the exit financing.

The Denver-based oil and natural gas company filed bankruptcy on Jan. 4. The Chapter 11 case number is 17-10015.

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