(Reuters) – Natural gas explorer and producer Gulfport Energy Corp GPOR.O It filed for Chapter 11 bankruptcy on Friday, becoming the latest U.S. energy company to succumb to weak crude oil prices as the COVID-19 pandemic reduces demand for fuel.
In a statement on Saturday, Gulfport said it secured $ 262.5 million in borrower financing held by its existing lenders as part of its revolving line of credit, including $ 105 million in new money that will be available in advance. court approval.
Weak demand due to the coronavirus pandemic and a price war between major oil producers have led to a historic collapse in oil prices.
As part of the restructuring plan, Gulfport said it plans to eliminate approximately $ 1.25 billion of funded debt and a significant reduction in annual cash interest.
Gulfport had interest payments on its debt due on October 15, November 1, and November 15.
Gulfport said it also received a pledge from existing lenders to provide $ 580 million in outbound financing upon exiting Chapter 11.
As of September 30, the company had total debt of approximately $ 2.5 billion, according to a filing with the United States Bankruptcy Court for the Southern District of Texas.
The company said it will also issue $ 550 million of new unsecured senior notes under the restructuring agreement to existing unsecured creditors of certain Gulfport branches.
Kirkland & Ellis LLP and Jackson Walker LLP served as co-counsel and Alvarez & Marsal served as a corporate restructuring consultant.
Reporting of Rama Venkat in Bengaluru; Editing by Matthew Lewis