Ryckman Creek Resources, LLC Files For Bankruptcy in Delaware

On February 2, 2016, Ryckman Creek Resources, LLC and certain of its affiliates, including Peregrine Midstream Partners, LLC (collectively, “Ryckman” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware in Wilmington. According to the declaration of Ryckman’s Vice President of Restructuring, Robert D. Albergotti (the “Albergotti Declaration”), Ryckman and its Prepetition Lenders are amidst negotiations to propose a plan of reorganization that results in a deleveraged balance sheet and sufficient liquidity to operate the business as a reorganized company. See Albergotti Declaration at 38.Ryckman’s business is comprised of storage of customer natural gas, proprietary trading of inventory gas, and production of liquid hydrocarbons residing in the Ryckman Creek Facility. The Ryckman Creek Facility is a partially-depleted oil and gas reservoir near the Opal Hub in Uinta County, Wyoming, which the Debtors began developing into a natural gas storage facility in 2011. See Albergotti Declaration at 8-12.Ryckman’s liabilities total approximately $333 million which includes principal and accrued interest pursuant to the Second Amended and Restated Credit Facility with ING Capital, LLC (“ING”) as Administrative Agent, secured by a lien on substantially all of the Debtors assets.  See Albergotti Declaration 19-27. ING has also agreed to provide post-petition bridge financing in the amount of $3,000,000 for 30 to 45 days of the Debtors’ operational needs.The Debtors’ bankruptcy cases are being jointly administered in the bankruptcy case captioned In re Ryckman Creek Resources, LLC, et al., Case No. 16-10292. A copy of the Albergotti Declaration can be accessed here: Download Albergotti 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/.