Penn Virginia Files For Bankruptcy in Richmond, Virginia

On May 12, 2016, Penn Virginia Corporation and certain of its affiliates (collectively, “Penn Virginia” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division. According to the declaration of Penn Virginia’s Chief Restructuring Officer, R. Seth Bullock (the “Bullock Declaration”), Penn Virginia has entered into a restructuring support agreement with holders of more than 87% of issued debt. The agreement contemplates a plan that would include amongst other things, a debt-for-equity conversion for holders of unsecured noteholders and cancellation of existing equity interests in the Debtors.  See Bullock Declaration at 7.Debtors are oil and gas E&P companies with assets including approximately 100,000 acres in the Eagle Ford shale in South Texas and some oil and natural gas producing properties in Oklahoma and Pennsylvania. See Bullock Declaration at 6-9.Debtors’ liabilities total approximately $1.3 billion in funded debt obligations, which include:    (i) $113 million in secured debt pursuant to a 2012 reserve-based credit facility with Wells Fargo Bank N.A., as administrative agent; and (ii) $1.075 billion in principal and $44 million in interest pursuant to senior unsecured notes with Wilmington Savings Fund Society as successor indenture trustee.  See Bullock Declaration at 28-33.The Debtors’ cases are jointly administered under the lead bankruptcy case In re Penn Virginia Corporation, et al., Case No. 16-32395.A copy of the Bullock Declaration can be accessed here: Download Bullock 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/.