Bonanza Creek Energy, Inc. Files for Chapter 11 Protection

On January 4, 2017, Bonanza Creek Energy, Inc. and its affiliated entities (collectively “Bonanza” or the “Debtors”) filed voluntary petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware. The lead case number assigned to the bankruptcy proceeding is No. 17-10015.

Prior to the filing, the Debtors entered into a pre-packaged plan which proposes to retire more than $850 million of Bonanza’s senior notes in exchange for 95.5% of the equity in the reorganized Bonanza.  In addition, it provides the opportunity to participate in a rights offering to raise an additional $200 million in new equity.  The Plan proposes to give Bonanza’s existing shareholders 4.5% of the equity and 3-year warrants to acquire up to 7.5% of the equity in the Reorganized Bonanza.

The Debtors’ first-day hearing was held on January 5, 2017.  The Debtors are represented by the law firm of Richards, Layton & Finger.  The cases have been assigned to the Honorable Kevin J. Carey.

Carl D. Neff is a partner with the law firm of Fox Rothschild LLP.  You can reach Carl at (302) 622-4272 or at [email protected].