Rosehill Resources Inc. and Rosehill Operating Co. LLC have commenced voluntary Chapter 11 cases on July 27.
In connection with the Chapter 11 cases, Rosehill has filed customary motions authorizing it to proceed with its operations in the ordinary course, including to enter into a $17.5 million junior convertible secured debtor-in-possession delayed-draw term loan facility and use cash collateral.
The company currently expects that the DIP facility will provide sufficient liquidity to meet its financial obligations during the duration of the Chapter 11 cases. The company expects to continue to operate its business during the Chapter 11 cases without material disruption to its vendors, partners or employees.
Under the restructuring support agreement (RSA), Rosehill and the consenting creditors have reached an agreement on the terms of a prepackaged plan of reorganization. Following consummation of the plan, the company’s equity will be owned solely by certain of the consenting creditors and holders of the company’s preferred stock, and holders of general unsecured claims, including the company’s trade creditors and vendors, will pass through the Chapter 11 cases with their claims unimpaired by the bankruptcy and being satisfied in full. Additionally, pursuant to the plan, all of the common equity of the company will be cancelled and receive no recovery.
Gibson, Dunn & Crutcher LLP and Haynes and Boone LLP are acting as legal counsel, and Jefferies LLC and Opportune LLP are acting as financial advisors to Rosehill in connection with the Chapter 11 cases.
Fracking company BJ Services, which filed for Chapter 11 in the bankruptcy court in Southern District of Texas, listed assets and liabilities in the range of $500 million to $1 billion.
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