EP Energy gets approval of amended plan of reorganization

By Taylor Fox

New York, Aug. 27 – EP Energy Corp. announced that the U.S. Bankruptcy Court for the Southern District of Texas has confirmed its amended plan of reorganization, according to a news release.

EP Energy expects to complete its financial restructuring process and emerge from Chapter 11 bankruptcy protection by Oct. 1.

Upon emergence, EP Energy will reduce its debt by $4.4 billion and receive $629 million in senior secured exit financing from its existing revolving loan lenders.

In total, the restructuring process will have eliminated 90% of pre-petition funded debt and over 90% of pre-petition annual cash interest expense, the company reported.

Following completion of the process, EP Energy expects to have less than $500 million of debt and a new three-year reserve-based loan credit facility.

The oil and natural gas exploration and production company is based in Houston. The company filed bankruptcy on Oct. 3, 2019 under Chapter 11 case number 19-35654.

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