Halcon Resources Corp., Houston, has filed voluntary petitions under Chapter 11 of the Bankruptcy Code to pursue a prepackaged plan of reorganization in which the firm would eliminate $1.8 billion in long-term debt and reduce annual interest expense by more than $200 million (OGJ Online, June, 12, 2016).
If the plan is approved by a Delaware bankruptcy court, creditors would split ownership of the firm and third-lien noteholders would receive more than 75% of the equity. The firm holds $3.12 billion in debt and $2.85 billion in assets, according to the filing.
Halcon’s core operations are in the Bakken-Three Forks formations and Eagle Ford shale. Noncore assets include the Tuscaloosa Marine Shale, Utica-Point Pleasant formations, and Austin Chalk formation.