Energy Prospectus

Denbury Resources to file Chapter 11 this week
Jul. 29, 2020 8:15 AM ET|About: Denbury Resources Inc. (DNR)|By: Carl Surran, SA News Editor
Denbury Resources (NYSE:DNR) says it expects to file for Chapter 11 bankruptcy protection on or before July 30.

The company says it entered into a restructuring support agreement with lenders and bondholders for a pre-packaged plan that will eliminate $2.1B of bond debt.

Denbury's existing lenders will provide a debtor-in-possession revolving loan that will roll into an exit facility with up to $615M in availability.

(S Alpha)

The company has agreed with creditors holding all of its revolving-credit-facility loans, about 67.2% of second lien notes and about 70.8% of convertible notes on a plan that will erase its $2.1 billion of bond debt.

Denbury expects to file its bankruptcy petition in U.S. Bankruptcy Court for the Southern District of Texas by Thursday.

It plans to continue normal operations throughout the bankruptcy process. Its lenders will provide a debtor-in-possession revolving loan that will roll into an exit facility with up to $615 million available.

Common stock also erased?

I've not seen the actual plan, so not sure about that.

Common shares virtually worthless:
Seekingalpha.com/article/-denbury-resources-common-shares-are-worth-close-to-zero

Sad, but that is what happens most of the time in Chapter 11. Longer term, if the oil price does push over $60 as Raymond James is forecasting for a year from now, then Denbury's assets will be worth a lot more. If the debt holders do allow the company to move forward (vs liquidating the assets now), then there is HOPE for the equity.