Court Confirms Chaparral Energy’s Plan of Reorganization

Vinson & Elkins advised Royal Bank of Canada in connection with Chaparral Energy, Inc.’s restructuring and prepackaged voluntary chapter 11 bankruptcy cases filed in the U.S. Bankruptcy Court for the District of Delaware, whose plan of reorganization was confirmed by the court on October 1, 2020. Royal Bank of Canada was the administrative agent under Chaparral’s first lien revolving credit facility, and will act as administrative agent under Chaparral’s $300 million exit financing facility upon emergence from chapter 11 and subject to the terms and conditions of the exit financing facility commitment.

The bankruptcy court approved Chaparral’s use of the bankruptcy proceedings to address its funded debt obligations through a prepackaged chapter 11 plan, whereby Chaparral fully equitized their approximately $300 million of outstanding prepetition senior notes in the form of new common stock and raised $35 million of new money at emergence through a convertible note rights offering, which was fully backstopped by certain senior noteholders.

The V&E team was led by partners Cris Dewar and Bill Wallander, and counsel Brad Foxman in collaboration with senior associate Danny Strassman and associates Alex Moosariparambil, Matt Struble, Trevor Spears and Kristie Duchesne.

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