Penn Virginia Files For Chapter 11; To Cut Debt By More Than $1 Bln

(RTTNews) - Penn Virginia Corp. announced that it and certain of its subsidiaries have filed voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code, to facilitate the deleveraging of their consolidated balance sheet through a prearranged restructuring that will reduce the company's long-term debt by more than $1 billion. The company anticipates emerging from chapter 11 by the end of the summer.

The company also announced entry into a restructuring support agreement with holders of 87% of the company's nearly $1.20 billion in total funded-debt obligations. The company has received a commitment for $25 million in debtor-in-possession financing from its RBL lenders, which is expected to provide liquidity throughout the chapter 11 process. The company has obtained a commitment for up to $128 million in exit financing from its RBL lenders, as well as a $50 million rights offering.