Triangle Petroleum files bankruptcy; secured noteholder to get stock

By Caroline Salls

Pittsburgh, May 8 – Triangle Petroleum Corp. made a pre-packaged Chapter 11 bankruptcy filing Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

The company negotiated a restructuring agreement with J.P. Morgan Securities, LLP (JPMS) under which a term loan claim held by JPMorgan Chase will be converted into an exit facility.

As holder of a Triangle Petroleum secured note, JPMS will receive 100% of the new common stock in the reorganized company.

All general unsecured claims and other secured claims will be paid in full in cash or paid in the ordinary course of business.

Holders of existing equity interests will receive no distribution.

Triangle Petroleum said JPMS indicated earlier this spring that it did not intend to agree to further extend a forbearance agreement with the company. The parties subsequently entered into discussions regarding a restructuring through a Chapter 11 filing.

The company is seeking court approval to use the cash collateral of its pre-bankruptcy lenders to fund its operations while in bankruptcy.

According to court documents, Triangle has $50 million to $100 million in assets and $100 million to $500 million in debt.

The company did not list any unsecured creditors with claims of $1 million or more.

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Young Conaway Stargatt & Taylor, LLP are representing Triangle in its Chapter 11 proceedings.

Triangle is an energy company based in Denver. The Chapter 11 case number is 19-11025.

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