A Whiting Petroleum bankruptcy notice from the company describes its plans for filing Chapter 11. The company says it plans to use the bankruptcy to restructure its operations. It plans to continue operations during this time and notes that it has $ 585 million in cash in its balance sheet.
According to the Whiting Petroleum new edition, the company has already reached an agreement with several holders of its older banknotes. The agreement would make these holders trade with their current senior notes for equity in the new company.
There are several possible benefits to a Whiting Petroleum bankruptcy. The foremost of these is the oil company’s ability to reduce its liabilities through restructuring.
Bradley Holly, President, President and CEO of Whiting Petroleum, said this about the WLL share competition application.
“Given the sharp decline in oil and gas prices driven by uncertainty surrounding the Saudi / Russia oil price war and the COVID-19 pandemic, the company’s board concluded that the key terms of the financial restructuring negotiated with our creditors provide the best the way forward for the company. ”
The Whiting Petroleum bankruptcy has Moelis & Company as financial advisor. Legal advisor for the process is Kirkland & Ellis. Alvarez & Marsal is the Restructuring Advisor and Stein Advisor’s Jeffrey Stein is the Chief Restructuring Officer for WLL.
The WLL share fell 44.38% as of Wednesday afternoon.
At the time of writing, William White had no position in any of the above securities.
Article printed from Investor Place Media, https://investorplace.com/2020/04/whiting-petroleum-bankruptcy-hammers-wll-stock/.
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