Halcón Resources Corp. (NYSE: HK) and certain subsidiaries said July 28 that they filed voluntary petitions under Chapter 11 of the Bankruptcy Code to pursue a prepackaged plan of reorganization. Filings were made in the District of Delaware in Wilmington, Del.
Under the restructuring plan, Halcon will eliminate about $1.8 billion in long-term debt and will reduce annual interest expense by more than $200 million. Under the plan, existing holders of Halcón common stock will receive 4% of the common stock of the reorganized company, subject to dilution.
Halcon said that its common stock should continue trading on the New York Stock Exchange through the bankruptcy process, which is expected to conclude in about 45 to 60 days. Vendors, royalty owners and other parties will be paid in ordinary course.
PJT Partners is Halcón's financial adviser, and Weil, Gotshal & Manges LLP is its legal adviser.
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