Warren Resources filed for Chapter 11 bankruptcy protection last week as a part of a restructuring plan.
According to Oil & Gas Journal, the company filed for bankruptcy in a Houston federal court on Thursday.
Blackstone Group’s GSO Capital Partners, one of Warren’s senior lenders, has agreed to give Warren a $130 million bankruptcy-exit loan and provide an additional $20 million to help fund the bankruptcy process.
The company’s senior lenders have agreed to exchange $248 million in debt for a 82.5 percent ownership stake, the Oil & Gas Journal said.
Claren Road Asset Management, a second-lien lender, will take the remaining 17.5 percent stake in the company as payment, the Wall Street Journal said.
Unsecured bondholders who are owed about $167.3 million in total will either receive cash or new notes equivalent to Claren’s equity stake, the Oil & Gas Journal said.
Warren Resources also won permission to draw $10 million from a restricted bank account to fund operations, the Wall Street Journal said.
Warren Resources’s current debt level stands at $545.2 million, according to court documents seen by the Wall Street Journal.
As of March 31, Warren’s cash position was $16.85 million, with $10.04 million in the restricted account that is under the control of its first lien lender.
The company named James A. Watt as its Chief Restructuring Officer in April.
Watt also serves as the company’s president and CEO.
Warren Resources is an independent energy company engaged in the acquisition, exploration, development and production of domestic oil and natural gas reserves.
Warren’s activities are primarily focused on oil in the Wilmington field in the Los Angeles Basin, natural gas in the Marcellus Shale in Pennsylvania and the Washakie Basin of Wyoming.