On May 22, 2020, Unit Corporation (NYSE- UNT) (“the Company”) announced that it had filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Court”) to effectuate a pre-negotiated Chapter 11 plan of reorganization (the “Plan”) that would reduce the Company’s funded debt obligations by more than $650 million and right-size the Company’s balance sheet for go-forward operations. The Company continued to operate in the ordinary course throughout the Chapter 11 process without material disruption to its vendors, customers, or partners. Importantly, the Company’s 50%-owned midstream affiliate, Superior Pipeline Company, L.L.C. and its subsidiaries (“Superior”), was not a debtor in the Chapter 11 cases and was unaffected by the Company’s Chapter 11 filing.
The Chapter 11 petitions were filed in accordance with a Restructuring Support Agreement (the “RSA”) between the Company, the holders of more than 70% of the Company’s 6.625% senior subordinated notes due 2021 (the “Subordinated Notes”) and all of the lenders under the Company’s Senior Credit Agreement (the “RBL Lenders”). The RSA set forth the principal terms of the restructuring transaction that was effectuated by the Plan, including an equitization of all of the outstanding Subordinated Notes and the replacement of the existing RBL facility and the DIP financing with a $180 million exit financing facility. Consummation of the Plan was subject to confirmation by the Court and other conditions in the Plan, the RSA and related transaction documents.
Unit Corporation Vendor FAQ
Tax Treatment for Cancelled Common Stock and New Warrants