Elk Petroleum Inc., an oil and gas producer operating in the Rocky Mountains, filed for bankruptcy with a deal already arranged to give most of the equity in the reorganized business to secured lenders that include Riverstone Credit Partners, the Wall Street Journal reported. The Denver business on Wednesday sought protection from creditors in U.S. Bankruptcy Court in Wilmington, Del., along with related companies that include Resolute Aneth LLC. Earlier this month their Australian owner, Elk Petroleum Ltd., began that country’s version of a chapter 11 restructuring, court filings said. The U.S. companies, which have about 95 employees in Colorado, Utah and Wyoming, have lined up $10 million in financing, including $4 million immediately, from lenders that include Riverstone Credit Partners – Direct LP to keep operating during bankruptcy, court papers said. The restructuring-support agreement has been unanimously accepted by each holder entitled to vote on the plan, Elk’s lawyers said, namely creditors in its revolving credit facility and its first-lien credit agreement, which includes Riverstone. The bankrupt companies’ debts include $114 million owed under a secured term loan and $14.5 million owed under a secured revolving loan facility, as well as $29.2 million owed to BP Energy Co. under a secured agreement to hedge prices.
