Goodrich Petroleum files Chapter 11

Following its latest unsuccessful attempt at a recapitalization plan, Goodrich Petroleum Corp. (OTC Markets: GDPM) filed for reorganization under Chapter 11 bankruptcy in order to implement the terms of a previously announced Restructuring Support Agreement (RSA).

Through the Chapter 11 restructuring, the company expects to eliminate approximately $400 million in debt from its balance sheet. The RSA eliminates all of the company's prepetition funded indebtedness other than its first lien reserve based loan facility, which currently has approximately $40 million outstanding. The RSA also provides for the company's executive management team to remain with the company, which will allow for the company's operations to continue as normal throughout the court-supervised financial restructuring process, including the payment of royalty and operating expenses.

Looking to increase liquidity in July, 2015, the company sold proved Eagle Ford reserves and associated leasehold in LaSalle and Frio Counties, TX, for $118 million.

Following the sale, and prior to its Chapter 11 filing, the company attempted to restructure its balance sheet through voluntary exchange offers. The latest effort was unsuccessful as the Houston-based company was unable to secure necessary approvals from common stockholders, preferred stockholders and unsecured noteholders.

Earlier in the year, Goodrich hired Lazard as a restructuring advisor, and Vinson & Elkins LLP as restructuring counsel.

 

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