Oasis Petroleum pre-packaged restructuring plan confirmed by court

By Sarah Lizee

Olympia, Wash., Nov. 10 – Oasis Petroleum Inc. announced late Tuesday that the U.S. Bankruptcy Court for the Southern District of Texas has confirmed its pre-packaged restructuring plan.

Oasis said it expects to complete the restructuring and emerge from Chapter 11 within 30 days.

Of the ballots received, the plan received 100% acceptance from the revolving lender group, 95% acceptance from the bondholder group, full acceptance from Mirada and 77% acceptance from the common equity group.

As previously reported, the company entered into a restructuring support agreement with substantially all of its revolving credit facility lenders and holders of 52% of the aggregate principal amount of its bonds on the pre-packaged plan.

Through the financial restructuring, Oasis Petroleum intends to reduce its total debt by $1.8 billion, representing 100% of its senior unsecured notes and senior unsecured convertible notes.

Upon emergence, the company expects to have around $340 million of borrowings under the Oasis Petroleum credit facility.

According to the company’s disclosure statement, holders of other secured claims will be paid in full in cash, receive the collateral securing their claim, have their claim reinstated or receive other treatment rendering the claim unimpaired.

Holders of other priority claims will receive treatment consistent with section 1129(a)(9) of the Bankruptcy Code.

Each holder of an allowed RBL claim electing to participate in the exit facility will receive (x) on a dollar-for-dollar basis in exchange for the portion of its RBL claim representing the principal of the loans owed to that lender under the RBL credit agreement, an equal amount of the principal of the revolving loans under the exit facility as of the effective date and (y) with respect to any other portion of that holder’s RBL claim, cash in an amount equal to the portion of that holder’s RBL claim.

Each holder of an allowed RBL claim not electing to participate in the exit facility will be deemed to have funded a second out term loan on a dollar-for-dollar basis in exchange for the portion of its RBL claim representing the principal of the loans owed to that lender, any unreimbursed claims for professional fees and expenses under the RBL credit agreement and any of that holder’s specified default interest and (y) with respect to any other portion of that holder’s RBL claim, cash in an amount equal to the portion of that holder’s RBL claim.

Holders of notes claims, Mirada claims and general unsecured will receive payment in full in cash or reinstatement.

Intercompany claims and intercompany interests other than in Oasis will be either reinstated or canceled.

Holders of interests in Oasis will receive their pro rata share of new warrants.

Oasis, a Houston-based oil and natural gas company, filed bankruptcy on Sept. 30. The Chapter 11 case number is 20-34771.

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