Halcón Announces Court Confirmation of Prepackaged Plan of Reorganization

Halcón Resources Corporation (OTC PINK: HKRS) (“Halcón” or the “Company”) announced that the United States Bankruptcy Court for the Southern District of Texas confirmed the Company’s prepackaged plan of reorganization (the “Plan”) under chapter 11 of the Bankruptcy Code and expects to emerge from bankruptcy within the next few weeks, subject to the satisfaction of all requisite closing conditions.

The Plan eliminates more than $750 million in debt and more than $40 million of annual interest expense and provides for a new $750 million senior secured revolving credit facility. Effective upon emergence, the initial borrowing base of the new facility will be $275 million, providing the Company with approximately $150 million of liquidity and leverage below 1.5x (net debt/LTM EBITDA).

As previously disclosed, the Plan enabled the Company to financially restructure its balance sheet without operational impact or interruption and continue to pay all employees and vendors and operate in the normal course of business.

Richard Little, Halcón’s Chief Executive Officer commented, “I want to thank our legal and financial advisors and the entire Halcón team for their dedication to making this process run expeditiously, while maintaining a focus on integrity and safety in operations above all else. I also want to thank our vendors for their commitment to and firm support of our operations over the course of the bankruptcy proceedings. We appreciate the support of our creditors and look forward to emerging from chapter 11 well capitalized and in a strong financial position. I’m excited for the future as we continue our focus on optimizing the development and value of our assets.”

Information about the chapter 11 cases can be found on www.kccllc.net/halcon.  The Company has also posted FAQs and other restructuring information on its website at www.halconresources.com.             

Perella Weinberg Partners and Tudor Pickering Holt & Co. are acting as financial advisors, Weil, Gotshal & Manges LLP is acting as legal counsel, and FTI Consulting, Inc. is acting as restructuring advisor to the Company in connection with the chapter 11 cases.  Ducera Partners LLC is acting as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison is acting as legal advisor to an ad hoc group of holders of the Company’s prepetition Senior Notes.

More detailed information of the Plan is available in the Company’s Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC”) on August 5, 2019.