Ep Energy Restructuring Support Agreement

Uncategorized Apr 9

Ep Energy Corporation (“EP Energy” (OTC Pink: EPEGQ) announced today that the United States Bankruptcy Court for the Southern District of Texas (the “Tribunal”) has confirmed the company`s turnaround plan (the “plan”). The company expects to complete its financial restructuring process and exit Chapter 11 bankruptcy protection as a private company in the coming weeks. After the appearance, the company will reduce its debt by approximately $3.3 billion, receive approximately $629 million in priority exit loans from the company`s existing revolving lenders and approximately $325 million in equity from some of its existing bondholders. Such debt reduction and financing will ensure that PE Energy will have greater financial flexibility to support ongoing operations. PE Energy will continue to operate normally throughout this process and will have sufficient liquidity to support its operations. Image: EP Energy secured a support agreement for the plan with major creditors. Photo: Courtesy of rawpixel/Pixabay. Russell Parker, President and Chief Executive Officer, said: “We are pleased to have reached an agreement with a major group of our major creditors on a plan that will facilitate our goal of significantly reducing our debt and strengthening our long-term competitive position. This agreement demonstrates the confidence of our creditors in our business and will enable EP Energy to quickly complete the financial restructuring process while continuing our business without interruption.

The EP Energy team continues to focus on improving operational execution and capital efficiency and positioning the company to succeed in today`s operating environment. We appreciate the continued commitment of our talented team and the partnership of our owners, owners, sellers and business partners. Ep Energy Corporation confirmed the restructuring plan by the court. (Credit: Pixabay skeeze) About EP Energy Corporation The company focuses on increasing the value of its portfolio of high-quality assets, improving capital efficiency, maintaining financial flexibility and tracking acquisitions and disposals. EP Energy is working to establish the standard for the efficient development of hydrocarbons in the United States. Learn more about epenergy.com. Following its emergence, EP Energy will reduce its debt by approximately $4.4 billion and receive $629 million in priority exit loans from existing revolving credit lenders. In total, the restructuring process will have eliminated approximately 90% of the debt funded prior to the petition and more than 90% of the annual cash interest expense prior to the petition.

At the end of the process, EP Energy expects less than $500 million of debt-free debt and a new three-year reserve credit facility.

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