Denbury Resources statement approved; plan hearing set for Sept. 2

By Caroline Salls

Pittsburgh, Aug. 3 – Denbury Resources Inc. obtained conditional approval of the disclosure statement for its pre-packaged plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

A combined hearing on confirmation of the plan and final approval of the disclosure statement is scheduled for Sept. 2.

As previously reported, Denbury entered into a restructuring support agreement with holders of 100% of revolving credit facility loans, 67.2% of second-lien notes and 70.8% of convertible notes for a pre-packaged Chapter 11 plan that will eliminate its $2.1 billion of bond debt.

Under terms of the pre-packaged plan, general unsecured claims will be paid in full in the ordinary course.

In conjunction with the bankruptcy filing, Denbury’s existing lenders will provide a debtor-in-possession revolving loan that will roll into an exit facility with up to $615 million in availability.

The plan will provide an opportunity to receive a recovery to out-of-the-money junior stakeholders by making warrants available to holders of subordinated notes, if that class votes to accept the proposed plan, and existing equity, if both the subordinated notes and equity classes vote to accept the proposed plan.

Denbury is a Plano, Tex., oil and natural gas company. The company filed bankruptcy on July 30 under Chapter 11 case number 20-33801.

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