Denbury Nears Completion of Financial Restructuring Process
On July 29, 2020, Denbury Resources entered into a Restructuring Support Agreement (the “RSA”) with funded debtholders holding 100% of the Company’s revolving credit facility loans, approximately 67.2% of its second lien notes and approximately 70.8% of its convertible notes for a “pre-packaged” plan that will eliminate the Company’s $2.1 billion of bond debt.
To implement the balance sheet restructuring contemplated by the RSA, the Company filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) on July 30, 2020.
On September 3, 2020, Denbury Resources announced that the Court confirmed its pre-packaged plan to restructure the Company’s balance sheet and eliminate Denbury’s $2.1 billion of bond debt. The pre-packaged plan was overwhelmingly supported by the Company’s stakeholders, receiving high consensus across all voting classes and unanimous acceptance from second lien and convertible noteholders. The Company expects to successfully complete its financial restructuring and emerge from Chapter 11 in mid-September.
Denbury will continue normal operations throughout this process. The Company’s existing lenders are providing a debtor-in-possession revolving loan that will “roll” into an exit facility with up to $615 million in availability. The Company expects this financing, together with cash flow from operations, to support the business during the Court-supervised process. Denbury will continue to evaluate the operating environment and make adjustments, as necessary, to adapt to the impact of COVID-19, OPEC+ actions and other factors affecting our business.
Denbury Resources Pre-Packaged Plan Confirmed By Court
Denbury Resources Commences Next Step to Implement Pre-Packaged Plan to Strengthen Its Balance Sheet and Reduce Debt
Denbury Resources Enters Into Restructuring Support Agreement for Pre-Packaged Plan to Strengthen Its Balance Sheet and Reduce Debt by $2.1 Billion
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“Our dedicated team continues to perform at a high level, remaining highly focused on safe, responsible and efficient operations, and we are committed to working with our service providers and vendors in the same manner as we have in the past. Looking forward, I believe that Denbury’s unique CO2 EOR focused strategy will continue to differentiate us from the industry, providing an beneficial solution that significantly reduces the CO2 emissions associated with the production of oil, underpinning our target of reaching full carbon neutrality in this decade.”