Fitch sinks Extraction Oil

Fitch Ratings said it downgraded Extraction Oil & Gas, Inc.’s (XOG) long-term issuer default rating to D from CC. Also, Fitch downgraded the company’s secured revolver to CCC/RR1 from CCC+/RR1 and unsecured notes to C/RR6 from CC/RR4.

“Fitch’s ratings reflect XOG’s announcement that it has voluntarily filed for relief under Chapter 11 of the U.S. Bankruptcy Code. The company has entered into a restructuring support agreement with certain of its unsecured noteholders, which outlines a plan for a debt-for-equity swap in which the unsecured noteholders will receive a majority of XOG’s equity. However, consensus has not been reached with the entire prepetition capital structure prior to filing,” Fitch said in a press release.

Fitch said it plans to withdraw the ratings 30 days after the petition date.

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