Oasis Petroleum has entered into a support agreement that will reduce their debt and save them from bankruptcy.
Sonn Law Group is representing investors who have suffered losses investing in Oasis Petroleum. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Oasis Petroleum recently announced that it has filed for Chapter 11 bankruptcy. The oil company entered into a restructuring support agreement with the majority of its creditors on a comprehensive, pre-packaged restructuring plan. The plan enables Oasis to reduce its debt and continue operating.
The bankruptcy filing does not include its MLP Oasis Midstream Partners. The company noted that Midstream is well-capitalized and would continue to operate normally. The restructuring reduces the total debt of Oasis by $1.8 billion, which includes all senior unsecured notes and senior unsecured convertible notes. After finalizing the bankruptcy, Oasis anticipates having $340 million of borrowings under its credit facility. The restructuring is expected to be completed as soon as November, pending approval of the bankruptcy court.
The volatility of the oil market following the COVID-19 pandemic was the main reason for the restructuring. The uncertainty led the company and its creditors to seek ways to reduce its debt and increase its financial flexibility long-term.
Contact Sonn Law to Discuss Recovery Options