Friday, December 9, 2022

Natural gas producer Gulfport Energy files for bankruptcy By Reuters


© Reuters.

(Reuters) – explorer and producer Gulfport Energy Corp (O:) filed for Chapter 11 bankruptcy on Friday, becoming the latest company in the U.S. energy sector to succumb to weak crude prices as the COVID-19 pandemic crimps fuel demand.

In a statement on Saturday, Gulfport said it has secured $262.5 million in debtor-in-possession financing from its existing lenders under its revolving credit facility, including $105 million in new money that will be available upon court approval.

Weak demand due to the coronavirus pandemic and a price war between major oil producers resulted in a historic plunge in oil prices.

As part of the restructuring plan, Gulfport said it expected to eliminate about $1.25 billion in funded debt and significantly reduce annual cash interest expense.

Gulfport had interest payments on its debt due on Oct. 15, Nov. 1 and Nov. 15.

Gulfport said it also received a commitment from existing lenders to provide $580 million in exit financing upon emergence from Chapter 11.

As of Sept. 30, the company had total debt of about $2.5 billion, according to a filing with the United States Bankruptcy Court for the Southern District of Texas.

The company said it would also issue $550 million of new senior unsecured notes under the restructuring agreement to existing unsecured creditors of certain Gulfport subsidiaries.

Kirkland & Ellis LLP and Jackson Walker LLP served as legal co-counsel and Alvarez & Marsal was restructuring adviser to the company.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories