Gulfport statement hearing set for Feb. 9, plan hearing for March 19

By Sarah Lizee

Olympia, Wash., Dec. 24 – Gulfport Energy Corp.’s hearing on approval of its disclosure statement has been scheduled for Feb. 9, and the hearing on confirmation of its Chapter 11 plan has been scheduled for March 19, according to a notice filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company filed bankruptcy to implement a pre-arranged plan of reorganization that would strengthen Gulfport’s balance sheet, significantly reduce its funded debt and lower ongoing operational costs.

Gulfport entered into restructuring support agreement with over 95% of its revolving credit facility lenders and noteholders holding over two-thirds of the outstanding principal amount of its senior unsecured notes.

Gulfport said it expects to eliminate about $1.25 billion in funded debt and significantly reduce annual cash interest expense going forward.

The company will also issue $550 million of new senior notes under the plan to existing unsecured creditors of Gulfport subsidiaries.

Some of Gulfport’s noteholders have committed to backstop a minimum new money investment of $50 million in the form of convertible preferred stock.

Under the plan, holders of other secured claims will receive payment in full in cash, the collateral securing their claims, or have their claims reinstated.

Holders of other priority claims will be paid in full.

Holders of RBL claims will receive either their pro rata share of an exit revolving/term loan A facility or their pro rata share of the exit term loan B facility.

Holders of general unsecured claims against the parent company will receive their pro rata share of the Gulfport parent equity pool. And, once the holders of notes claims receive distributions of 94% of the new common stock, holders of notes claims will waive any excess recovery on account of their pro rata share of the Gulfport parent equity pool until holders of general unsecured claims have received enough new common stock to satisfy their claims in full.

Holders of general unsecured claims against Gulfport subsidiaries will receive their pro rata share of the Gulfport subsidiaries equity pool, rights offering subscription rights and new unsecured notes.

Intercompany claims will be canceled in exchange for the distributions contemplated by the plan to holders of claims against and interests in the respective debtor entities and will be considered settled.

Holders of intercompany interests will receive no recovery.

Existing interests in the parent company and all allowed section 510(b) claims will be canceled.

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.

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