HOUSTON, Oct. 05, 2016 (GLOBE NEWSWIRE) — Warren Resources, Inc. announced today the satisfaction of all conditions precedent to the effective date of its Chapter 11 plan of reorganization. Accordingly, after approximately four months of court proceedings, Warren has successfully emerged from Chapter 11 bankruptcy protection, with an improved balance sheet and a viable capital structure.
Warren’s bankruptcy proceeding began on June 2, 2016 when Warren and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. On September 14, 2016, the bankruptcy court entered a confirmation order approving Warren’s plan of reorganization. In accordance with the plan of reorganization, Warren’s pre-bankruptcy common stock and preferred stock have been cancelled on the effective date of the plan, and Warren is issuing new common stock to its pre-petition creditors, including lenders under its pre-petition first-lien and second-lien secured credit facilities, an unsecured contractual claimholder and investors who held Warren’s pre-petition unsecured notes.
“We are pleased to have completed our reorganization in a timely and efficient manner with the cooperation of all our significant creditors. With our new capital structure, we are positioned to further develop and potentially expand our asset base in order to enhance value for our new stockholders,” stated James A. Watt, Warren’s President, Chief Executive Officer and Chairman of the Board. “I extend my sincere thanks and appreciation to our lenders, our employees, members of our former board of directors, and our financial, accounting and legal advisors, all of whom have worked tirelessly throughout this inherently difficult process and contributed to its successful outcome. Likewise, I am grateful to our customers and vendors for their confidence and support while we underwent the painful, but necessary measures to rightsize our debt in light of an unforeseen protracted negative price environment for oil and gas. We look forward to working with our new board of directors, and with the support of all of our key stakeholders, to execute on our strategic goals during the current industry downturn and the next industry recovery.”
In connection with its restructuring and cost reduction measures, Warren plans to relocate its headquarters to Dallas, Texas by January 1, 2017, and close its current offices in Houston and Plano, Texas. Warren also plans to reduce leased office space in other locations, but anticipates maintaining a small team in Denver, Colorado and field offices and associated personnel in Long Beach, California, Rollins and Casper, Wyoming and Tunkhannock, Pennsylvania.
Additional details about Warren’s restructuring and the related agreements will be provided in a current report on Form 8-K to be filed with the Securities and Exchange Commission, which can be viewed on the SEC’s website at http://www.sec.gov or on Warren’s website at http://www.warrenresources.com/.
Jefferies LLC acted as financial advisor to Warren in connection with its restructuring, and Andrews Kurth Kenyon LLP represented Warren as its legal counsel throughout the restructuring.
About Warren Resources
Warren Resources, Inc. is an independent energy company engaged in the acquisition, exploration, development and production of domestic oil and natural gas reserves. Warren’s activities are primarily focused on oil in the Wilmington field in the Los Angeles Basin in California, natural gas in the Marcellus Shale in Pennsylvania, and the Washakie Basin of Wyoming.