Energy XXI inks deal on revolver treatment; plan deadlines extended

By Caroline Salls

Pittsburgh, May 20 – Energy XXI Ltd. reached an agreement with its lender agent and holders of 11% second-lien notes due 2020 on the proposed treatment of revolving credit facility claims in its Chapter 11 cases, according to an 8-K filed Friday with the Securities and Exchange Commission.

Under that agreement, the current amounts outstanding under the revolver will remain in place during the Chapter 11 cases.

In addition, $30 million of restricted cash will be paid to the lenders at emergence to permanently reduce a pre-petition EPL Oil & Gas, Inc. sub-facility balance.

A mandatory liquidity condition of at least $90 million was set for the reorganized company, consisting of cash and/or committed financing. The condition will take effect upon emergence after all restructuring costs and claims due at emergence are paid.

The company said the remaining drawn amount of $69 million of the EPL sub-facility plus accrued default interest will be converted into a new three-year term loan, and Energy XXI Gulf Coast, Inc.’s sub-facility will be converted into a new three-year sub-facility with outstanding letters of credit to be issued under that new sub-facility.

In addition, Energy XXI said it entered into a first amendment to the restructuring support agreement with the second-lien noteholders.

Under the amendment, the deadline for the company to file a joint pre-arranged plan of reorganization and related disclosure statement and the deadline for filing of a disclosure statement approval motion and a plan confirmation scheduling motion was extended to May 20 from May 16.

Energy XXI, an independent oil and natural gas development and production company based in Houston, filed for bankruptcy on April 14 in the U.S. Bankruptcy Court for the Southern District of Texas. Its Chapter 11 case number is 16-31928.

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