January 4, 2017 / 4:00 PM / 7 months ago

BRIEF-Bonanza Creek Energy initiates prepackaged Chapter 11 proceedings

2 Min Read

Jan 4 (Reuters) - Bonanza Creek Energy Inc :

* Bonanza Creek Energy initiates prepackaged Chapter 11 proceedings pursuant to restructuring support agreement

* Prepackaged plan will reduce unsecured bond obligations by approximately $867 million

* Emergence from Chapter 11 is expected before end of Q1 of 2017

* Has filed a series of motions with bankruptcy court requesting authority to continue normal operations

* Company will continue to operate its business as a debtor-in-possession under jurisdiction of bankruptcy court

* Prepackaged plan contemplates a $200 million equity infusion

* Will continue to work closely with suppliers and partners to ensure that it meets ongoing obligations, and business continues uninterrupted

* Fully expects to continue existing operations, maintain staffing and equipment as normal through financial restructuring process

* RSA provides that existing shareholders will get 4.5 pct of reorganized co's equity as of effective date of prepackaged plan Source text for Eikon: Further company coverage:

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