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Vinson & Elkins Advising Royal Bank of Canada in Connection with Chaparral Energy’s Restructuring and Prepackaged Voluntary Chapter 11 Filing

Vinson & Elkins is advising 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. Royal Bank of Canada is the administrative agent under Chaparral’s first lien revolving credit facility, and will act as administrative agent under Chaparral’s proposed $300 million exit financing facility upon emergence from chapter 11 and subject to the terms and conditions of the exit financing facility commitment.

Chaparral plans to use the bankruptcy proceedings to address their funded debt obligations through a prepackaged chapter 11 plan, whereby Chaparral will fully equitize their approximately $300 million of outstanding prepetition senior notes in the form of new common stock and raise $35 million of new money at emergence through a convertible note rights offering, which is fully backstopped by certain senior noteholders. Chaparral intends to continue operating in the ordinary course of business during the chapter 11 process pending seeking approval of its plan of reorganization.

The V&E team was led by partners Bill Wallander and Cris Dewar 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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