Denbury completes restructuring, emerges from Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, Sept. 18 – Denbury Inc., formerly Denbury Resources Inc., announced Friday that it has completed its financial restructuring and emerged from Chapter 11 bankruptcy.

According to a company news release, Denbury’s common stock is expected to begin trading on the New York Stock Exchange under the ticker symbol “DEN” at market open on Sept. 21.

Consistent with its previously announced restructuring support agreement and pre-packaged plan of reorganization, the company said it has restructured its balance sheet and eliminated $2.1 billion of bond debt.

The plan was confirmed on Sept. 2 by the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, Denbury entered into a restructuring support agreement with holders of 100% of revolving credit facility loans, 67.2% of second-lien notes and 70.8% of convertible notes for a pre-packaged Chapter 11 plan that will eliminate its $2.1 billion of bond debt.

In conjunction with the bankruptcy filing, Denbury’s existing lenders will provide a debtor-in-possession revolving loan that will roll into an exit facility with up to $615 million in availability.

The plan will provide an opportunity to receive a recovery to out-of-the-money junior stakeholders by making warrants available to holders of subordinated notes, if that class votes to accept the plan, and existing equity, if both the subordinated notes and equity classes voted to accept the plan.

Denbury said it continued to operate without interruption throughout the Chapter 11 process while fully satisfying all trade, customer, employee, royalty owner, working and other mineral interest claims in the ordinary course.

“Denbury is now a stronger company with the financial flexibility to continue building on our unique CO2 EOR-focused strategy for many years to come,” president and chief executive officer Chris Kendall said in the release.

“As a result of this process, we are better positioned to compete in a dynamic and evolving energy market and capitalize on the many opportunities ahead, including leveraging our expertise and our strategic assets into an emerging carbon capture, use and storage business. As we move forward, we are committed to maintaining a strong balance sheet.”

Kirkland & Ellis LLP is acting as legal counsel to Denbury, Evercore Inc. is acting as financial adviser and Alvarez & Marsal is serving as restructuring adviser.

Denbury is a Plano, Tex., oil and natural gas company. The company filed bankruptcy on July 30 under Chapter 11 case number 20-33801.

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