Chaparral: Oklahoma City's Chaparral Energy seeks bankruptcy after reaching approval with backers

By Jack MoneyBusiness writerjmoney@oklahoman.comChaparral Energy is the latest Oklahoma energy company to seek bankruptcy.On Sunday, it sought Chapter 11 protection from a federal bankruptcy court in Delaware after reaching a deal to restructure its business with a majority of its debt holders.The plan seeks to equitize $300 million of debt and create a new reserves-based lending facility the company could draw upon for future needs.It also intends to raise $35 million through a convertible notes rights offering that it would use to help compensate holders of that debt after it emerges from bankruptcy, company officials said.So far, Chaparral has secured the support of about 78% of holders of its credit facility and about 78% of holders of its senior notes for its plans, officials said.Given that support, officials added the company expects its reorganization to be completed relatively quickly."While we have taken carefully measured and decisive action to address the challenges of 2020, the overall impact to the energy industry, including Chaparral, has been severe," Chuck Duginski, the company's CEO, stated in a release issued Monday about its plans.Read more on NewsOK.com