Gulfport Energy Corp., the Oklahoma City-based natgas explorer and producer, which has interest pay out over its debts due on October 15, November 1 and November 15, had filed Chapter 11 bankruptcy protection in a US Bankruptcy court in Houston, Texas, late on Friday, marking up the latest in a string of major US energy producers which had to seek court protection amid a double whammy of a multi-year low crude oil and natgas futures’ prices alongside possibilities of a potential demand crunch in a near-term outlook as a pandemic resurgence in Europe and the United States had stoked frets of a sharp decline in fuel demands.
In point of fact, following its filing for a chapter 11 bankruptcy protection, the Oklahoma-based natgas producer, Gulfport was quoted saying in a statement that it had already secured a stark sum of $262.5 million in so-called debtor-in-possession financing under a revolving credit facility agreement, an amount that a bankrupted firm could access, if it is required to stay operational during bankruptcy proceeding, while Gulfport had also added that about $105 million from the aforementioned amount would be made available upon court approval.
Gulfport secures $262.5 million in debtor-in-possession
In actuality, latest move from the Oklahoma City-headquartered American natgas giant came against a corrosive backdrop for US crude oil and natgas industry which had witnessed a perilous plunge this year, partly due to a supply glut following a price war over market share in April alongside a historic nosedive of crude oil futures over frets of global oil demand due to an ongoing global-scale pandemic outbreak.
Nonetheless, according to Gulfport statement released late on Saturday, the American natgas mogul had also added that it had been expecting to erase about $1.25 billion worth of funded debts as a part of its restructuring plan, while the company had also been forced to trim its annual cash interest expenses.
On top of that, Gulfport’s Saturday’s statement had also been quoted saying that the company had received commitments from its existing lenders to proffer a $580 million following emergence from its Chapter 11 bankruptcy.