EP Energy Takes Action to Reduce its Debt Significantly and Strengthen its Balance Sheet
On October 3, 2019, EP Energy announced that it has voluntarily filed petitions for chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”).
EP Energy will continue to operate as normal throughout this process, and has sufficient liquidity to support its operations.
EP Energy intends to use this process to reduce its debt significantly, strengthen its balance sheet and better position the Company for the long-term.
The decision to undertake this financial restructuring follows a comprehensive review by a special committee of independent members of EP Energy’s Board of Directors, as well as extensive ongoing discussions with the Company’s creditors.
As announced on March 19, 2020, EP Energy and certain of its note holders mutually agreed to amend and terminate the previously announced Plan Support Agreement (the “PSA”). EP Energy plans to focus on working with other note holders in its capital structure in developing a plan of reorganization that considers the recent changes in the oil market.
The EP Energy team remains focused on improving operational execution and capital efficiency and positioning the Company to succeed in the current operating environment. The Company has sufficient cash on hand, combined with cash flow generated from ongoing operations, to support the business during the financial restructuring process.