restructuringInformation & Resources
On May 9, Chaparral voluntarily filed for petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court of Delaware. This action will facilitate the restructuring of our balance sheet as we continue to work through negotiations of a debt to equity exchange with our bondholders and lenders.
Given the continued market environment presented by depressed oil and natural gas prices, Chaparral chose to voluntarily enter into Chapter 11 to allow us to significantly reduce our debt and amend our existing financing agreements. This process will ultimately reduce our leverage position and increase our liquidity by reducing our debt by approximately $1.2 billion, which will greatly enhance Chaparral’s long-term financial security and better position us for the future.
Chaparral’s day-to-day operations will continue as normal, without interruption during this process. We remain committed to maintaining our long-standing relationships with our employees, owners, vendors and the communities where we operate. We fully expect to continue to meet our obligations to each as we work hard to maintain our high standards of operational excellence and live up to our reputation as a trusted Mid-Continent operator.