Kirkland & Ellis and Jackson Walker appeared together on the bankruptcy docket for at least the third time in the last week with yet another company utilizing a restructuring: Colorado-based Ultra Petroleum.
The independent exploration and production company, which focuses on developing natural gas reserves in Wyoming, said in a company statement that it is looking to erase $2 billion in debt off its balance sheet through its Chapter 11 reorganization.
Court documents show that lawyers from Kirkland’s New York, Chicago and Washington, D.C. offices are working on the bankruptcy with Houston lawyer Matthew Cavenaugh of Jackson Walker, who filed Ultra Petroleum’s petition Thursday evening in Houston federal court and is serving as the company’s local counsel.
Cavenaugh’s fingers are sure to be on fire at this point after filing dozens of documents on behalf of Ultra as well as two major retailers: Houston-based Stage Stores and Dallas-based Neiman Marcus. Stage Stores filed for Chapter 11 on Monday, while Neiman’s filed last week. Both bankruptcies are also being handled in Houston federal court.
Ultra Petroleum is the latest to file for bankruptcy protection amid the far-from-ideal commodities environment that the COVID-19 pandemic and Russia-Saudi Arabia oil price war have created. The company filed a number of other motions in support of its financial restructuring plan, which it says will allow Ultra to pay employee wages and provide benefits without interruption in the ordinary course of business. Ultra also expects to pay suppliers and vendors in full and will continue making royalty and working interest payments when due.
U.S. Bankruptcy Judge Marvin Isgur of the Southern District of Texas conducted an emergency hearing this morning to hear Ultra’s numerous motions.
Court documents show that Ultra’s largest unsecured claim is $234 million owed to Wilmington Trust, which is serving as trustee for a debt offering of senior notes due in 2025. Wilmington Trust also is trustee for another set of senior notes due 2022, which accounts for Ultra’s second largest unsecured claim of $155 million.
The lawyers involved from Kirkland include David Seligman and Brad Weiland in Chicago, Christopher Greco in New York and AnnElyse Scarlett Gains in Washington, D.C. In addition to Cavenaugh, Jackson Walker lawyers on the bankruptcy also include Austin partner Jennifer Wertz and Houston partner Kristhy Peguero.
Quinn Emanuel is serving as special counsel for Ultra. The company’s financial advisor is Centerview Partners and its restructuring advisor is FTI Consulting.
Evercore Group is serving as the consenting term lendors’ financial advisor, while their legal counsel is Stroock & Stroock & Lavan.