Warren Resources files for Chapter 11

Warren Resources Inc., Denver, filed for bankruptcy protection in a Houston federal court on June 2 after negotiating a debt-for-equity swap with a group of senior lenders led by Blackstone Group’s GSO Capital Partners.

Senior lenders agreed to swap $248 million they are owed for an 82.5% stake in the reorganized company, court papers showed.

Claren Road Asset Management LLC is among second-lien lenders who are owed about $57 million. Court papers showed the Claren-led group would get the rest of the reorganized independent in return for canceling debt. Unsecured bondholders owed $167.3 million would get cash or new notes equal to Claren’s equity stake.

Court papers said GSO also agreed to provide $130 million as a bankruptcy-exit loan and an additional $20 million to pay for the Chapter 11 bankruptcy court case.

Warren Resources primarily focuses on oil in the Wilmington field in the Los Angeles basin of California, natural gas in the Marcellus shale in Pennsylvania, and the Washakie basin of Wyoming.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...