• Surety Companies contributed funding to allow sale
  • Negotiated DIP financing with a non–traditional lender
  • Sale of all the valuable assets at above market prices

The offshore producer of oil and gas filed Chapter 11 as a result of a severe liquidity shortfall and negotiated a DIP facility which allowed for several capital projects designed to increase production and profitability. A CR3 professional was engaged and successfully eliminated unprofitable leases and oversaw the Chapter 11 process. The completed marketing plan resulted in a 363 sale of substantially all of the assets of the company. The team negotiated DIP financing doubling production, revenue, and cash-flows. The sale of all the valuable assets at above market prices allowed DIP facility to be repaid in full and other creditors to be repaid.

The Situation

  • Offshore producer of oil and gas operating several federal and state leases, representing 16 fields, centered in the Gulf of Mexico
  • Significant levels of abandonment liabilities existed in various fields
  • Company filed Chapter 11 as a result of a severe liquidity shortfall and negotiated a DIP facility which allowed for several capital projects designed to increase production and profitability

The Work

  • CR3 professionals engaged as financial advisor and CRO
  • Eliminated unprofitable leases
  • Analyzed and managed significant P&A and abandonment liabilities
  • Negotiated with surety companies to help fund plan and abandonment obligations
  • Oversaw successful Chapter 11 process
  • Established litigation trust to pursue D&O and other causes of action for the benefit of unsecured creditors
  • Completed a marketing plan which resulted in a 363 sale of substantially all of the assets of the company
  • Implemented liquidating plan and sought recoveries under the D&O and other causes of action

The Results

  • Surety companies contributed funding to allow sale to occur under Section 363
  • Negotiated DIP financing with a non–traditional lender to provide drilling capital to recomplete several wells during the bankruptcy process, doubling production, revenue and cash-flows
  • Sale of all the valuable assets at above market prices, allowing DIP facility to be repaid in full and other creditors to be repaid

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