HighPoint Resources Corp. on March 18 received court approval of its prepackaged reorganization plan, four days after the Denver-Julesburg Basin oil producer filed Chapter 11 bankruptcy protection.
The prepackaged plan includes approval of Denver-based HighPoint’s pending $376 million merger with Bonanza Creek Energy Inc., which the companies had agreed to last November.
According to a Reuters report on March 18, U.S. Bankruptcy Judge Christopher Sontchi in Wilmington, Delaware, signed off on the prepackaged plan during a short, remote hearing. The plan was developed and voted on by creditors before HighPoint filed for bankruptcy on March 14.
Reuters reported that HighPoint Resources blamed its financial trouble on “low oil prices caused by the COVID-19 pandemic and oil price war between Russia and Saudi Arabia.”
Kirkland & Ellis LLP is legal adviser, Tudor, Pickering, Holt & Co. and Perella Weinberg Partners are financial advisers and AlixPartners LLP is the restructuring adviser to HighPoint.
Evercore is financial adviser and Vinson & Elkins LLP is legal adviser to Bonanza Creek. Akin Gump Strauss Hauer & Feld LLP is serving as legal adviser to an informal group of HighPoint noteholders that have signed the “transaction support agreement.”
J.P. Morgan Securities LLC also served as an adviser to HighPoint.
The appointment of Daniel E. “Danny” Brown as CEO fills a role left vacant since last December when Oasis Petroleum Co-founder Thomas Nusz retired.
Mark McFarland was appointed interim CEO in December, following the departure of Todd Stevens.
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