Bruin E&P Partners LLC, Houston, along with its subsidiaries plan to restructure through a prepackaged Chapter 11 process after having filed in the US Bankruptcy Court for the Southern District of Texas.
The company, focused on the acquisition and development of onshore oil and natural gas producing properties in the core of the Bakken shale and Three Forks formations in the Williston basin of North Dakota, said it has the support of more than two-thirds of all its funded debt creditors, as well as its current equity holders, for a restructuring transaction that will eliminate over $840 million of the company's funded debt.
The restructuring will be financed by a debtor-in-possession financing facility of $230 million. Exit financing of $230 million has also been secured. The company expects to emerge from Chapter 11 with $230 million in funded debt.
Bruin expects to file customary motions to allow it to continue to pay employee wages and health and welfare benefits, and to continue relationships with suppliers and business partners. Bruin's business will continue to operate as normal for the duration of the restructuring.
Formed in 2015, Bruin acquired operated oil and gas properties in the Williston basin from Halcon Resources Corp. in 2017 for $1.4 billion (OGJ Online, July 17, 2017).
