Bonanza Creek Energy Inc. has filed petitions in U.S. Bankruptcy Court to pursue a pre-packaged reorganization, the Denver Business Journal reported today. Denver-based Bonanza Creek announced plans two weeks ago to file for chapter 11 protection. The company said yesterday that its pre-packaged plan is intended to de-leverage its transactions by equitizing about $867 million of its existing unsecured bond obligations. The company will also "substantially bolster its liquidity position through a $200 million rights offering for new equity, to be backstopped by certain unsecured noteholders," according to the filing. Also under the plan, the company's existing shareholders will receive 4.5 percent of the equity of a reorganized Bonanza Creek and three-year warrants to acquire up to 7.5 percent of equity. Read more.
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