Midstates Petroleum Company Files For Bankruptcy in Houston, Texas

On April 30, 2016, Midstates Petroleum Company, Inc. and its subsidiary Midstates Petroleum Company, LLC (collectively, “Midstates” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. According to the declaration of Midstates’ Chief Financial Officer, Nelson M. Haight (the “Haight Declaration”), Midstates has filed a restructuring support agreement which has been executed by over 74% of each class of Debtors’ secured creditors. The support agreement anticipates a plan, which includes, among other things, a debt-for-equity conversion.The Debtor’s operations are focused on the acquisition, production, and sale of oil, natural gas liquids, and natural gas from domestic onshore hydrocarbon basins. See Haight Declaration at 16. The Debtors own approximately 277,800 acres in the Texas, Louisiana and Oklahoma region.  See Haight Declaration at 29.Midstates’ liabilities total approximately $2.045 billion in funded debt obligations which includes: (i) $249.2 million pursuant to a 2012 Credit Agreement with SunTrust Bank as administrative agent; (ii) $625 million pursuant to the 2015 Senior Lien Notes with Wilmington Trust, N.A. as trustee and collateral agent; (iii) $529.7 million  pursuant to the 2015 Third Lien Notes with Wilmington Trust, N.A. as a trustee and collateral agent (iv) $293.6 million pursuant to the 2020 Senior Notes with Wells Fargo N.A. as indenture trustee; and (v) $347.7 million pursuant to the 2021 Senior Notes with Wells Fargo N.A. as trustee.  See Haight Declaration at 32-39.The Debtors cases are jointly administered under the lead bankruptcy case In re Midstates Petroleum Company, Inc., et al. Case No. 16-32237.A copy of the Haight Declaration can be accessed here: Download Haight Declaration.For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney. For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.