Swift Energy Co., a Houston independent focused on the Eagle Ford shale of South Texas, filed voluntary petitions on Dec. 31, 2015, for relief under Chapter 11 of the US Bankruptcy Code in US Bankruptcy Court for the District of Delaware. The action includes eight of its subsidiaries.
The company says it has reached an agreement with holders of a majority of its senior notes to convert all senior notes to equity.
Swift also has arranged up to $75 million of debtor-in-possession (DIP) financing from a group of senior noteholders to provide additional liquidity to fund the business through the Chapter 11 process. The company expects to restructure, amend, or refinance its prepetition $330 million secured revolving credit facility as part of its plan of reorganization.
The agreement with the senior noteholders provides for the executive management team to retain their positions upon the completion of the Chapter 11 process.
Swift expects to continue operations during the pendency of the bankruptcy case, and anticipates making royalty payments and payments to working interest owners when due. The company adds that its employees should expect no change in their daily responsibilities and to be paid as usual.
“The company had to take action in response to the significant reduction in oil and gas prices that the entire industry has been facing.” commented Terry E. Swift, president and chief executive officer, on the filing.