Warren Resources Leaves Bankruptcy Protection

by San Antonio Attorney

Warren Resources, Inc., which filed for Chapter 11 bankruptcy, released a statement on October 4 that it has fulfilled all requisites before the effectual date of reorganization plan.   Therefore, after about four months since the filing, Warren has finally left bankruptcy protection, with an enhanced balance sheet and a feasible capital makeup.

The bankruptcy proceeding of Warren started in June 2016 when the company along with some of its subsidiaries voluntarily filed for reorganization bankruptcy.  The court approved the company’s restructuring plan in September.  As part of the bankruptcy plan, Warren’s preferred stock and common stock before the filing have been dropped on the plan’s effectivity date, and new common stocks are being issued to Warren’s pre-petition creditors.

Warren’s President and CEO James A.  Watt said in a statement that they are happy with timely completion of the company’s with the support of the creditors.  He also thanked everyone who worked hard throughout the bankruptcy process.

In line with its reorganization and cost-cutting actions, Warren aims to transfer its headquarters to Dallas, Texas next year, and close down its existing offices in Plano and Houston, Texas.   The company also plans to get smaller offices, but aims to maintain an office in Denver Colorado.  It also plans to open field offices in Pennsylvania, Wyoming and California.

Warren Resources, Inc.  is a U.S.-based energy company involved in the purchase, exploration, expansion and production of natural gas and oil.

Before it filed for bankruptcy, the company missed a $7.5 million payment to its creditor.

Companies and individuals have the option to file for bankruptcy if they can no longer manage to pay their debts.  They can file for bankruptcy protection under either Chapter 11 or Chapter 7 of the U.S.  Bankruptcy Code.  A Bankruptcy Lawyer San Antonio can give legal information involving bankruptcy filing.

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