California Resources Corp. (CRC) has entered into a restructuring support agreement (RSA) with holders of approximately 84 percent of the company’s 2017 term loans, 51 percent of the company’s 2016 term loans and its Elk Hills midstream joint venture partner, Ares Management.
To implement the terms of the RSA, the company and certain of its subsidiaries have filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. Upon plan confirmation, the implementation of the RSA would reduce CRC’s debt substantially, enabling the firm to operate safely through the current downturn in commodity prices and establishing a solid financial foundation to enhance future value creation.
“We have consistently operated within cash flow, significantly reducing the outsized debt burden we inherited from Occidental Petroleum at our December 2014 spin-off. However, today’s unpr
