Denbury Resources’ Restructuring and Prepackaged Voluntary Chapter 11

Vinson & Elkins LLP advised JPMorgan Chase Bank on the deal.

Denbury Resources Inc. (NYSE: DNR) has entered into a Restructuring Support Agreement (the “RSA”) with funded debtholders holding 100% of revolving credit facility loans, approximately 67.2% of second lien notes and approximately 70.8% of convertible notes for a “pre-packaged” plan that will eliminate the Company’s $2.1 billion of bond debt.

JPMorgan is the administrative agent under Denbury’s $615,000,000 first lien revolving credit facility, and will act as administrative agent under Denbury’s debtor-in-possession financing facility, as well as Denbury’s proposed exit financing facility upon emergence from chapter 11 and subject to the terms and conditions of the exit financing facility commitment. Denbury plans to use the bankruptcy proceedings to strengthen its balance sheet by restructuring over $2 billion of bond debt. Denbury intends to continue operating in the ordinary course of business during the chapter 11 process pending seeking approval of its plan of reorganization.

The V&E team was led by partners Erec Winandy (Picture) and Bill Wallander in collaboration with partner Paul Heath, senior associates Rafael Alvarado and Matt Pyeatt, and associates Alex Moosariparambil, Matt Struble and Trevor Spears. Also advising were partner Tzvi Werzberger and counsel Farah Paliwala.

Involved fees earner: Rafael Alvarado – Vinson & Elkins LLP; Paul Heath – Vinson & Elkins LLP; Alex Moosariparambil – Vinson & Elkins LLP; Farah Paliwala – Vinson & Elkins LLP; Matthew Pyeatt – Vinson & Elkins LLP; Trevor Spears – Vinson & Elkins LLP; Matthew Struble – Vinson & Elkins LLP; William Wallander – Vinson & Elkins LLP; Tzvi Werzberger – Vinson & Elkins LLP; Erec Winandy – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: JPMorgan Chase & Co.;

Author: Ambrogio Visconti