Davis Polk is advising Bonanza Creek Energy, Inc. in connection with its restructuring under Chapter 11 of the Bankruptcy Code. Bonanza Creek and its subsidiaries have entered into a Restructuring Support Agreement (“RSA”) with NGL Energy Partners LP and NGL Crude Logistics, LLC, a contractual counterparty that purchases Bonanza Creek’s crude oil production, and members of an ad hoc group holding more than 50% of the outstanding obligations under Bonanza Creek’s 6.75% senior notes due 2021 and 5.75% senior notes due 2023. Under the RSA, the parties have agreed to the terms of a plan of reorganization that would eliminate more than $850 million of debt from Bonanza Creek’s balance sheet, replace, refinance or discharge more than $190 million of obligations outstanding under its reserve-based loan credit facility and restructure its major commercial relationships. The ad hoc group has also agreed to backstop a $200 million rights offering for Reorganized Bonanza Creek’s shares of common stock.

Bonanza Creek and its subsidiaries also launched solicitation of a prepackaged plan of reorganization under Chapter 11 of the Bankruptcy Code on December 23, 2016, and expect to commence chapter 11 proceedings on or before January 5, 2017, in the United States Bankruptcy Court for the District of Delaware.

Bonanza Creek is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The company’s assets and operations are concentrated primarily in the Rocky Mountain region in the Wattenberg Field, focused on the Niobrara and Codell formations, and in southern Arkansas, focused on oily Cotton Valley sands. 

The Davis Polk restructuring team includes partners Marshall S. Huebner and Brian M. Resnick, associates Daniel M. Silberger, Adam L. Shpeen and Douglas R. Keeton. The litigation team includes partner Elliot Moskowitz and associate Lara Samet Buchwald. The capital markets team includes partner Byron B. Rooney and associate Christopher M. Bezeg. The executive compensation team includes counsel Ron M. Aizen. All members of the Davis Polk team are based in the New York office. All members of the Davis Polk team are based in the New York office.

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