Oklahoma-based oil driller Chaparral Energy has filed for Chapter 11 bankruptcy protection due to the crash of oil prices as a result of the novel coronavirus (Covid-19) pandemic.
The voluntary petitions for reorganisation were filed in the US bankruptcy court for the District of Delaware.
This is the second time in four years the company has filed for bankruptcy protection, Bloomberg reported.
The first time was during the oil price collapse in 2014-2016 and it emerged out of it in March 2017.
Chaparral noted that it will restructure its balance sheet by equitising all $300m of its unsecured debt and continue its normal operations during the bankruptcy process with using $32m in cash on hand.
Chaparral Energy CEO Chuck Duginski said: “While we have taken carefully measured and decisive action to address the challenges of 2020, the overall impact to the energy industry, including Chaparral, has been severe.
“A swift restructuring will right-size our balance sheet, improve our cost structure and best position Chaparral for the future. Importantly, we intend to maintain normal operations and meet all of our trade commitments timely and under their existing terms.
“This restructuring will allow us to continue to efficiently operate without interruption and focus on delivering strong results. I would like to thank our employees, contractors, suppliers and customers for their unwavering commitment to Chaparral.”
Last week, offshore support vessel company Hermitage Offshore Services and 28 of its vessel-owning subsidiaries filed for Chapter 11 bankruptcy.
Last month, offshore oil and gas driller Noble Corporation announced that it filed for Chapter 11 bankruptcy protection to restructure debt, following a historic crash in crude oil prices.