Bruin E&P Partners, LLC Notice of Comprehensive Prepackaged Restructuring Transaction
Bruin E&P Partners, LLC and its subsidiaries (“Bruin” or the “Company”), an exploration and production company with assets in the Williston Basin, North Dakota, today announced that it has the support of more than two-thirds of all its funded debt creditors, as well as its current equity holders, for a restructuring transaction that will eliminate over $840 million of the Company’s funded debt.
The restructuring transaction will be implemented through a prepackaged Chapter 11 process that will be financed by a debtor-in-possession (“DIP”) financing facility of $230 million. Bruin has a solid acreage position in the Williston Basin and a management team with extensive experience. The Bruin restructuring transaction, through the DIP financing and cash from operations, is expected to provide Bruin with the platform to continue near term operational success and long term growth. Bruin remains committed to its partners in the Williston Basin, including those who have supported Bruin over the last five years.
The Company also has secured committed exit financing of $230 million and will emerge from Chapter 11 with approximately $230 million in funded debt. The deleveraging transaction and exit financing will poise Bruin, through its extensive operational experience within and outside the Williston Basin, for the balance sheet to enable long term growth.
Bruin expects to file a number of customary motions to allow the Company to continue to pay employee wages and health and welfare benefits, and to continue its accretive relationships with its suppliers and other business partners. Bruin’s business will continue to operate as normal for the duration of the restructuring. Bruin will continue to operate in accordance with applicable laws, rules and regulations, including inspection and maintenance as required pursuant to applicable environmental regulations. In addition, Bruin will continue to place the utmost importance on our employees who have been instrumental to Bruin during the last five years.
Today, the Company commenced solicitation of votes from its equity holders, lenders, and bondholders in support of a prepackaged Chapter 11 Plan of Reorganization (the “Plan”). The Company commenced the prepackaged Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”). The Company’s support from its equity and creditor constituencies is memorialized in a Restructuring Support Agreement. The Company plans to move swiftly toward Court approval of the Plan, with confirmation expected within approximately 45 days from filing.