Murphy Energy files Chapter 11 bankruptcy amid plans to sell assets

By Caroline Salls

Pittsburgh, Oct. 6 – Murphy Energy Corp. filed Chapter 11 bankruptcy Wednesday in the U.S. Bankruptcy Court for the Northern District of Texas.

According to a statement filed with the court by chief restructuring officer Steven List, the company’s goal in these bankruptcy cases is to maintain the value of its assets and enterprise while completing the sale process that began before the bankruptcy filing.

List said Murphy Energy nearly closed on a transaction in September 2015 that would have paid all creditors in full with a meaningful recovery for equity interests, but that deal fell through.

“Even in the weeks leading up to the bankruptcy, various parties continued to express interest in the debtors’ businesses at a level that would have produced meaningful, if not complete, recovery for creditors,” List said.

“Based on the continued interest expressed by prospective buyers, the debtors anticipate a robust sale process through these cases and intend to rehabilitate creditors through a § 363 sale or plan of reorganization.”

DIP financing

In conjunction with the bankruptcy filing, the company obtained a commitment for up to $9 million in debtor-in-possession financing from Bank of America, NA.

The post-bankruptcy termination date under the DIP note will be the earliest of 5 p.m. ET on Dec. 31, the date the loan commitments are terminated, the effective date of a Chapter 11 plan and the date the court approves the extension of any other credit facilities to Murphy.

Interest will accrue at the Base rate plus 900 basis points.

The company is seeking interim access to $4 million of the financing.

Debt details

According to court documents, Murphy has $100 million to $500 million in both assets and debt.

The company’s largest unsecured creditors are:

• Vitruvian II Woodford, LLC of Spring, Texas, with a $4.88 million claim;

• CMLT of Tulsa, Okla., with a $2.61 million claim;

• BBX Operating, LLC of Austin, Texas, with a $2.24 million claim;

• White Operating Co. of Oklahoma City, with a $2.24 million claim;

• Devon Energy Production Co. LP of Oklahoma City, with a $1.93 million claim;

• Centurion Pipeline, LP of Houston, with a $1.8 million claim;

• Hilco Transport, Inc. of Greensboro, N.C., with a $1.61 million claim;

• Enable Prism Holdings, LLC of Oklahoma City, with a $1.41 million claim;

• Hilcorp Energy Development, LP of Houston, with a $1.09 million claim; and

• Rio Energy International, Inc. of Houston, with a $1 million claim.

The company is represented by Dykema Cox Smith.

Murphy Energy is a Tulsa, Okla.-based privately owned integrated midstream provider of transportation, storage and marketing services for crude oil, natural gas liquids and condensates. The Chapter 11 case number is 16-33971.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.