Oil Oasis (NASDAQ:AEO) voluntarily enters Chapter 11 bankruptcy protection as it seeks to reduce its debt.
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Here’s what OAS stock investors gotta know on the bankruptcy of Oasis Petroleum.
- The company notes that it is filing for bankruptcy in hopes of reducing its total debt by $1.8 billion.
- This represents 100% of its Senior Unsecured Notes and Convertible Senior Unsecured Notes.
- OAS expects to emerge from bankruptcy with $340 million borrowed from its credit facility.
- He notes that he acquired $450 million in debtor-in-possession financing to allow him to continue operations through the process.
- This includes the continuation of its current upstream and production operations.
- It will also allow the company to continue paying employees, vendors and suppliers.
- Oasis Petroleum notes that the bankruptcy does not affect Oasis channel partners (NASDAQ:PKO) or one of its subsidiaries in which it holds an interest.
- The company attributes the need for bankruptcy restructuring to falling oil and gas prices, as well as the effects of the novel coronavirus on the economy.
- The company is looking to get through the bankruptcy process quickly and hopes to exit in November 2020.
Thomas Nusz, President and CEO of Oasis Petroleum, had the following to say about the news of the bankruptcy.
“We are confident that we are taking the right steps to position the business for long-term success. We thank our lenders and noteholders for their support, which reflects their confidence in our company and our team, and which will allow us to move quickly through the court-supervised process.
OAS stock was down 30.2% on Wednesday afternoon.
As of the date of publication, William White had (neither directly nor indirectly) any position in the securities mentioned in this article.
Article printed on InvestorPlace Media, https://investorplace.com/2020/09/oasis-petroleum-bankruptcy-details-for-investors/.
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