Goodrich Petroleum Voluntarily Files For Chapter 11

http://goodrichpetroleum.investorroom.com/2016-04-15-Goodrich-Petroleum-Voluntarily-Files-For-Chapter-11-To-Implement-Financial-Restructuring-With-Restructuring-Support-Agreement-Executed-By-A-Majority-Of-Second-Lien-Noteholders

Goodrich Petroleum Corporation (OTC Markets: GDPM) (the "Company") today announced that it and its subsidiary has filed for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, in order to implement the terms of that certain Restructuring Support Agreement (the "RSA") previously announced. The RSA and the bankruptcy proceeding will allow for the restructuring of the Company's balance sheet, which will strengthen the Company's financial position by reducing long-term debt and enhancing financial flexibility.
Through the Chapter 11 restructuring, the Company will eliminate approximately $400 million in debt from its balance sheet, substantially deleverage its capital structure and strategically position the Company for long-term performance in an anticipated improving commodity price environment. The RSA eliminates all of the Company's prepetition funded indebtedness other than its first lien reserve based loan facility, which currently has approximately $40 million outstanding, resulting in a significantly deleveraged balance sheet upon the Company's emergence from the Chapter 11 bankruptcy process. The RSA also provides for the Company's executive management team to remain with the Company, which will allow for the Company's operations to continue as normal throughout the court-supervised financial restructuring process, including the payment of royalty and operating expenses.
In consultation with its financial advisors and legal counsel, the execution of the RSA and today's filing reflect the Company's next step in its efforts to respond proactively in a depressed commodity environment. Prior to the Chapter 11 filing, the Company attempted to restructure its balance sheet through voluntary exchange offers, with the latest effort unsuccessful due to the inability to get the necessary approvals from its common stockholders, preferred stockholders and unsecured noteholders.
The Company expects to maintain sufficient liquidity to continue its operations and support the business in the ordinary course during the financial restructuring process.