Denbury Resources Inc. DNR,
He said Wednesday that he filed for Chapter 11 bankruptcy protection under a prepackaged plan with his creditors that will allow him to eliminate $ 2.1 billion of bond debt. The Plano, Texas-based oil and natural gas company said it has an agreement with debt holders who own 100% of revolving loans from lines of credit, approximately 67.2% of second-lien bonds and approximately 70.8% of convertible bonds. The company expects to operate normally during the Chapter 11 process and has a revolving debtor-in-possession loan that will be transferred to an exit facility of up to $ 615 million. “Recently, our entire industry has been greatly affected by the destruction of world oil demand caused by the COVID-19 pandemic, which has led to record oil prices and rapid changes in energy market conditions,” said the president. Executive Chris Kendall in a statement. Denbury has taken many steps to preserve liquidity, reducing capital spending and general and administrative costs, and optimizing operations, he said. The stock, which is trading at 24 cents, was up 16% before trading on the news.
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