Energy XXI Ltd., an independent oil and gas producer active in South Louisiana and the Gulf of Mexico, has filed for voluntary bankruptcy to accommodate a restructuring it says will allow operations to continue.
The company and some of its subsidiaries entered a restructuring support agreement with holders of more than 63% of secured second-lien notes. The agreement eliminates nearly all funded indebtedness previously in place other than a first-lien reserve-based loan facility.
The company is negotiating with a steering committee of lenders representing first-line indebtedness not part of the restructuring agreement.
Energy XXI said the restructuring will remove more than $2.8 billion in debt from its balance sheet. John Schiller remains president and chief executive officer.
“The company believes it has sufficient liquidity, including approximately $180 million of cash on hand as of Mar. 31, 2016, and funds generated from ongoing operations, to continue its operations and support the business in the ordinary course during the financial restructuring process,” a company statement said.
Energy XXI reported average production in the last calendar quarter of 2016 of 54,500 boe/d, of which 70% was liquids.