Denbury Resources Inc. DNR,
on Wednesday, it said it had reached a pre-arranged restructuring plan with its creditors that would allow it to remove a $ 2.1 billion debt bond. The oil and gas company Plano, Tx., Will apply for protection under Chapter 11 on Thursday. The company stated that it has an agreement with bondholders who own 100% of revolving credit instruments, about 67.2% of second mortgage bonds and about 70.8% of convertible bonds. The company expects to operate normally during the Chapter 1
1 process and has a revolving loan owned by the borrower, which will reach the underlying facility up to $ 615 million. “Recently, our entire industry has been greatly affected by the destruction of global oil demand caused by the COVID-19 pandemic, record low oil prices and rapid changes in energy market conditions,” said CEO Chris Kendall in a statement. Denbury has taken many steps to maintain liquidity, reduce capital expenditures and general and administrative costs, and optimize operations. Shares traded at 24 cents rose 16% in the news.