Ursa Piceance files bankruptcy to sell assets or equitize RBL debt

By Caroline Salls

Pittsburgh, Sept. 2 – Ursa Piceance Holdings LLC filed Chapter 11 bankruptcy Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

According to a statement filed with the court by chief restructuring officer Jamie Chronister, Ursa filed bankruptcy to complete a sale of substantially all of its assets through a court-supervised auction process or, alternatively, to reorganize through a deleveraging debt equitization by its pre-bankruptcy RBL lenders.

Under a timeline proposed by the company, bids would be due by Nov. 2, an auction would be held on Nov. 6, if necessary, and the sale hearing would be held on Nov. 10.

Chronister said the company has been unable to service its debt to its secured lenders since March 2019 in order to preserve liquidity for the business.

In conjunction with the bankruptcy filing and marketing process, Ursa has obtained a commitment for $20 million in debtor-in-possession financing from Wells Fargo Bank and other lenders, with a proposed five-month term.

The non-default interest rate is expected to be around 4%, Chronister’s statement said.

According to court documents, Ursa has $100 million to $500 million in both assets and debt.

The company’s largest unsecured creditors are Garfield County Treasurer of Glenwood Springs, Colo., with a $5.31 million taxes payable claim and Ruby Pipeline, LLC of Houston, with a $5.02 million trade payables claim.

Young Conaway Stargatt & Taylor, LLP is representing Ursa in its Chapter 11 proceedings.

Ursa is a Denver-based private energy company engaged in the development and production of oil and gas in the Piceance Basin, principally in rural areas of Western Colorado. The Chapter 11 case number is 20-12065.

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