Houston-based Oasis Petroleum said Wednesday that it had filed for Chapter 11 bankruptcy protection in federal court as part of prepackaged plan the company reached with its largest creditors in an effort to clear $1.8 billion in debt.
In a company statement, the oil producer cited the typical culprits of any energy corporate reorganization occurring in 2020: a volatile oil and gas market exacerbated by low commodities prices and “the unprecedented impact” of COVID-19.
Oasis said its prepackaged plan includes a restructuring support agreement that the company reached with essentially all of the lenders in Oasis’ revolving credit facility and the creditors who hold 52% of the aggregate amount of Oasis’ bonds.
Lawyers from Kirkland & Ellis’ New York and Chicago offices and Jackson Walker’s Texas offices are handling the bankruptcy for Oasis. Involved from Jackson Walker are Houston lawyers Matt Cavenaugh and Bruce Ruzinsky, Austin lawyer Jennifer Wertz and Dallas lawyer Vienna Flores Anaya.
Tudor Pickering and Perella Weinberg Partners are serving as Oasis’ financial advisors, while AlixPartners is serving as restructuring advisor.
New York lawyers from Paul, Weiss, Rifkind ,Wharton & Garrison and Houston lawyers John Higgins, Eric English, Shane Johnston and Megan Young-John of Porter Hedges are representing the ad hoc committee of senior note-holders.
The noteholders’ financial advisor is Evercore.
Texas lawyers from Vinson & Elkins are representing Wells Fargo, which will act as the administrative agent under Oasis’ proposed $450 million debtor-in-possession financing facility, which will help the company remain liquid to maintain operations. The V&E team includes Dallas lawyers Erec Winandy, Bill Wallander, Brad Foxman, Matthew Struble and Garrick Smith and Houston lawyers James Longhofer, Farah Paliwala and Brittany Simington.
The bankruptcy has been assigned to Judge Marvin Isgur in Houston federal court and is expected to conclude in November.
In its voluntary Chapter 11 petition, Oasis lists general counsel Nickolas Lorentzatos as its the company’s authorized representative in the bankruptcy. Lorentzatos has been with Oasis with 2014, and before that had stints at Targa Resources, ConocoPhillips and Burlington Resources. He began his legal career at Bracewell.
The Chapter 11 reorganization also involves eight Oasis affiliates, but does not include its master limited partnership, Oasis Midstream Partners.
The case number is 20-34771 in the Houston division of the U.S. Bankruptcy Court for the Southern District of Texas.