RusBankrot
We know everything about bankruptcy
24/11/2024
Sunday
THIS DAY IN HISTORY:
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
24 November
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
CALIFORNIA RESOURCES OIL PRODUCER FILED FOR BANKRUPTCY
On July 15, the American oil company California Resources Corp. applied for a planned bankruptcy in the court of Texas. It was done after the company had failed to fulfill its loan obligations. For today, it is the last oil and gas company in the United States to apply for protection.
It is known that California Resources was able to reach an agreement on the provision of a financial support in the amount of $ 1.1 billion with the partners who were also refinancing the current credit line. The documents indicate that the company estimates its assets and liabilities in the range from $ 1 billion to 10 billion.
The latter turned to bankruptcy even earlier, being unable to withstand the circumstances of the crisis. However, since its spin-off from the Occidental Petroleum holding in 2014, the company has continued to be plagued by the large debt.
As the company’s CEO Todd Stevens noted in his speech, in recent years, the company has significantly reduced the debt burden inherited from Occidental Petroleum. However, the unique market conditions forced the management to apply to the court in accordance with the requirements of Chapter 11 of the US Bankruptcy Code.
In May, Rusbankrot already wrote about the fact that the company had warned investors about the possibility of restructuring due to the accumulated debts. Since mid-May, the company has been looking for financing, negotiating with creditors. As a result, the oil producer was unable to pay the interest payments on May 29. However, at the beginning of June, it became clear that the company had managed to conclude agreements with the majority of creditors and postpone the payment without resorting to the court procedures. Against this background, the company's share price even grew by 34%.
The management's negotiations with investors and creditors to provide funds for the planned bankruptcy and restructuring have been quite successful.
Thus, the company managed to attract about 450 million. It received 200 million more through the secondary financing. It is known that the Sullivan & Cromwell legal company will help to go through the bankruptcy procedure, and Alvarez & Marsal will act as a financial consultant in the restructuring process.
It is known that California Resources was able to reach an agreement on the provision of a financial support in the amount of $ 1.1 billion with the partners who were also refinancing the current credit line. The documents indicate that the company estimates its assets and liabilities in the range from $ 1 billion to 10 billion.
The experts point out that California Resources is the largest oil producer, along with such giants as Chesapeake Energy and Whiting Petroleum.
The latter turned to bankruptcy even earlier, being unable to withstand the circumstances of the crisis. However, since its spin-off from the Occidental Petroleum holding in 2014, the company has continued to be plagued by the large debt.
As the company’s CEO Todd Stevens noted in his speech, in recent years, the company has significantly reduced the debt burden inherited from Occidental Petroleum. However, the unique market conditions forced the management to apply to the court in accordance with the requirements of Chapter 11 of the US Bankruptcy Code.
Like most of its competitors, California Resources has slashed its production and capital expenditures amid the pandemic and a price war among major oil producers.
In May, Rusbankrot already wrote about the fact that the company had warned investors about the possibility of restructuring due to the accumulated debts. Since mid-May, the company has been looking for financing, negotiating with creditors. As a result, the oil producer was unable to pay the interest payments on May 29. However, at the beginning of June, it became clear that the company had managed to conclude agreements with the majority of creditors and postpone the payment without resorting to the court procedures. Against this background, the company's share price even grew by 34%.
The management's negotiations with investors and creditors to provide funds for the planned bankruptcy and restructuring have been quite successful.
Some of the lenders supported the manufacturer in exchange for the equity rights.
Thus, the company managed to attract about 450 million. It received 200 million more through the secondary financing. It is known that the Sullivan & Cromwell legal company will help to go through the bankruptcy procedure, and Alvarez & Marsal will act as a financial consultant in the restructuring process.
17.07.2020
