Whiting Petroleum Bankruptcy: WLL Stock Falls 44% on Chapter 11 Filing

Whiting Petroleum (NYSE:WLL) bankruptcy news has WLL stock taking a beating on Wednesday.

Whiting Petroleum Bankruptcy: WLL Stock Falls 44% on Chapter 11 Filing

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A Whiting Petroleum bankruptcy announcement from the company outlines its plans for the Chapter 11 filing. The company says that it plans to use the bankruptcy to restructure its business. It plans to continue operations during this time and notes it has $585 million of cash on its balance sheet.

According to the Whiting Petroleum new release, the company has already reached agreements with several holders of its senior notes. The agreement would have these holders trading in their current senior notes for equity in the new company.

There are several possible benefits from a Whiting Petroleum bankruptcy. Chief among these is the ability of the petroleum company to reduce its debt via a restructure.

Bradley Holly, the Chairman, President and CEO of Whiting Petroleum, said this about the WLL stock bankruptcy filing.

“Given the severe downturn in oil and gas prices driven by uncertainty around the duration of the Saudi / Russia oil price war and the COVID-19 pandemic, the Company’s Board of Directors came to the conclusion that the principal terms of the financial restructuring negotiated with our creditors provides the best path forward for the Company.”

The Whiting Petroleum bankruptcy has Moelis & Company serving as its financial advisor. The legal advisor for the process is Kirkland & Ellis. Alvarez & Marsal is the restructuring advisor and Stein Advisors’ Jeffrey Stein is acting as the Chief Restructuring Officer for WLL.

WLL stock was down 44.38% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/04/whiting-petroleum-bankruptcy-hammers-wll-stock/.

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