Halcon Reaches Agreement for Chapter 11 Filing
YOUNGSTOWN, Ohio – Halcon Resources Corp., once an aggressive prospector for oil and gas in the northern tier of the Utica shale, announced Wednesday it’s reached an agreement in principle to restructure its business affairs through a pre-packaged Chapter 11 bankruptcy filing.
The Houston-based company has drilled wells in Trumbull and Mahoning counties in Ohio, none of which performed to expectations. It also drilled wells in nearby Mercer County, Pa., which were also non-productive.
If implemented, the restructuring plan would eliminate about $1.8 billion worth of company debt and approximately $222 million of preferred equity. It would reduce the company’s interest burden by more than $200 million.
The plan contemplates that affected stakeholders would receive newly issued common shares in a reorganized Halcon.
Halcon pulled out of the Utica shale in 2014, after its wells failed to produce the desired results. This, combined with a collapse in oil prices later that year, led to financial strains in the company.
Halcon reported a net loss to shareholders of $566.9 million during the first quarter of 2016.
From Our Archives
Nov. 8, 2013:
Halcon CEO: Expletive Not Deleted in Utica Assessment
Copyright 2023 The Business Journal, Youngstown, Ohio.