Gulfport Energy committee objects to $262.5 million DIP financing

By Sarah Lizee

Olympia, Wash., Dec. 16 – Gulfport Energy Corp.’s official committee of unsecured creditors objected to the company’s proposed $262.5 million in debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The committee claims that the DIP facility improperly forecloses potential sources for unsecured creditor recoveries and provides the DIP lenders and pre-petition first-lien lenders with excessive and unnecessary protections.

The group also alleges that the facility effectively dictates the disposition of the Chapter 11 cases on terms that the committee has not yet had an opportunity to even analyze, let alone agree to.

“The debtors should not be permitted to enter into an order that imposes the terms of a Chapter 11 plan outside of the plan confirmation process,” the committee said.

As previously reported, the company gained interim access to $90 million of the financing on Nov. 16. A final hearing is scheduled for Dec. 18.

Gulfport is a natural gas and oil company based in Oklahoma City. The company filed Chapter 11 bankruptcy on Nov. 13 under case number 20-35562.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.