Restructuring

Chaparral Energy

restructuringInformation & Resources

On August 15th, Chaparral entered into a Restructuring Support Agreement (“RSA”) with key creditor groups, including holders of 78% of the loans under its first lien revolving credit facility and holders of 78% of its 8.75% Senior Notes due 2023. The company has commenced soliciting votes to approve of a prepackaged plan of reorganization and has voluntarily filed petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware in accordance with the RSA. Through the Chapter 11 process, Chaparral expects to equitize all $300 million in Senior Notes, significantly deleveraging its balance sheet and strategically positioning the Company for long-term success.

As of August 14th Chaparral had cash on hand of approximately $32 million, which, combined with its normal operating cash flow, is expected to allow the Company to maintain normal operations and meet its other financial commitments throughout the Chapter 11 restructuring period. To facilitate this, Chaparral has filed a series of motions with the Court which were approved on August 18th and allow the Company to continue to pay employee wages and benefits without interruption, make royalty and working interest payments when due, and pay suppliers and vendors in full under existing terms for goods and services, among other things.

We remain committed to maintaining our long-standing relationships with our employees, owners, vendors and the communities where we operate. We fully expect to continue to meet our obligations to each as we work hard to maintain our high standards of operational excellence.

If you are a third party looking for claims information, or if you would like more information about the restructuring process, please contact our noticing agent at http://www.kccllc.net/chaparral2020, call (866) 523-2941 (toll free), (781) 575-2044 (toll) or email Chaparral2020Info@kccllc.com.