Restructuring


On May 22, 2020, Unit Corporation (NYSE- UNT) (“the Company”) announced that it had filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Court”) to effectuate a pre-negotiated Chapter 11 plan of reorganization (the “Plan”) that will reduce the Company’s funded debt obligations by more than $650 million and right-size the Company’s balance sheet for go-forward operations. The Company expects to continue to operate in the ordinary course throughout the Chapter 11 process without material disruption to its vendors, customers, or partners. Importantly, the Company’s 50%-owned midstream affiliate, Superior Pipeline Company, L.L.C. and its subsidiaries (“Superior”), is not a debtor in the Chapter 11 cases and is unaffected by the Company’s Chapter 11 filing. Additionally, the Company does not anticipate that payments to vendors and suppliers of its subsidiary Unit Drilling Company will be impacted.

The Chapter 11 petitions were filed in accordance with a Restructuring Support Agreement (the “RSA”) between the Company, the holders of more than 70% of the Company’s 6.625% senior subordinated notes due 2021 (the “Subordinated Notes”) and all of the lenders under the Company’s Senior Credit Agreement (the “RBL Lenders”). The RSA sets forth the principal terms of the restructuring transaction that will be effectuated by the Plan, including an equitization of all of the outstanding Subordinated Notes and the replacement of the existing RBL facility and the DIP financing with a $180 million exit financing facility. Consummation of the Plan will be subject to confirmation by the Court and other conditions in the Plan, the RSA and related transaction documents.

  1. Press Release
  2. Unit Corporation Customer FAQ
  3. Unit Corporation Royalty Owner FAQ
  4. Unit Corporation Vendor FAQ
  5. Unit Petroleum Working Interest Partner FAQ
  6. Unit Corporation Investor FAQ
  7. Unit Drilling Company Customer FAQ
  8. Unit Drilling Company Vendor FAQ

ADDITIONAL INFORMATION

For additional information and documentation related to the restructuring, please visit: https://cases.primeclerk.com/UnitCorporation or call 877.720.6581.