California Resources Corporation’s Financial Restructuring

Kirkland & Ellis counseled Ares Management L.P., which was CRC’s partner in the Elk Hills midstream joint venture, in relation to CRC financial restructuring, while Paul, Weiss advised an ad hoc group of secured and unsecured creditors. Sullivan & Cromwell LLP advised California Resources Corporation.

California Resources Corp. (NYSE: CRC), an independent California-based oil and natural gas exploration and production company, announced its emergence from Chapter 11. CRC emerged with a $540 Million Revolving Credit Facility, $300 Million of Secured Notes and $200 Million of Second Lien Term Loan.

CRC’s Joint Plan of Reorganization in its Chapter 11 case cancelled pre-existing debt, consolidated CRC’s ownership in the Elk Hills power plant and cryogenic gas plant, and provided for the payment in full of all valid and undisputed trade and contingent claims in the ordinary course of business. CRC officially concluded its reorganization after completing all required actions and satisfying the remaining conditions of the Plan.

The Kirkland team was led by restructuring partner Steve Serajeddini (Picture), debt finance partner Lucas Spivey, and transactional partner John Pitts.

Paul, Weiss advised an ad hoc group of secured and unsecured creditors with a team including restructuring partners Elizabeth McColm and Andrew Rosenberg, counsel Diane Meyers and of counsel Stephen Shimshak; litigation partner William Clareman; corporate partners David Huntington, Lawrence Wee and Jordan Yarett and counsel Evan Berman, David Epstein and Philip Heimowitz; tax partner David Mayo; employee benefits partner Andrew Gaines; real estate partner Peter Fisch; and environmental counsel William O’Brien.

The S&C team that advised CRC was led by Jim Bromley, co-head of S&C’s Restructuring practice, Andy Dietderich, co-head of the Restructuring practice, and included special counsel Alexa Kranzley.

Involved fees earner: John Pitts – Kirkland & Ellis; Steven Serajeddini – Kirkland & Ellis; Lucas Spivey – Kirkland & Ellis; Evan Berman – Paul Weiss Rifkind Wharton & Garrison; William Clareman – Paul Weiss Rifkind Wharton & Garrison; David Epstein – Paul Weiss Rifkind Wharton & Garrison; Peter Fisch – Paul Weiss Rifkind Wharton & Garrison; Andrew Gaines – Paul Weiss Rifkind Wharton & Garrison; Philip Heimowitz – Paul Weiss Rifkind Wharton & Garrison; David Huntington – Paul Weiss Rifkind Wharton & Garrison; David Mayo – Paul Weiss Rifkind Wharton & Garrison; Elizabeth McColm – Paul Weiss Rifkind Wharton & Garrison; Diane Meyers – Paul Weiss Rifkind Wharton & Garrison; William O’Brien – Paul Weiss Rifkind Wharton & Garrison; Andrew Rosenberg – Paul Weiss Rifkind Wharton & Garrison; Stephen Shimshak – Paul Weiss Rifkind Wharton & Garrison; Lawrence Wee – Paul Weiss Rifkind Wharton & Garrison; Jordan Yarett – Paul Weiss Rifkind Wharton & Garrison; James Bromley – Sullivan & Cromwell; Andrew Dietderich – Sullivan & Cromwell; Alexa Kranzley – Sullivan & Cromwell;

Law Firms: Kirkland & Ellis; Paul Weiss Rifkind Wharton & Garrison; Sullivan & Cromwell;

Clients: Ares Management Ltd; California Resources Corp. ; California Resources Corp. – ad hoc Group of Secured and Unsecured Creditors;

Author: Ambrogio Visconti