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Dec. 16, 2011 /PRNewswire/ -- Delta Petroleum Corporation (Nasdaq: DPTR) announced today that it and certain of its subsidiaries (collectively, "Delta" or the "Company") filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
"After reviewing all of our alternatives, the Company's management and Board of Directors, working in consultation with outside legal and financial advisors, unanimously determined that the Chapter 11 process would provide the opportunity for the best result for our creditors, shareholders, suppliers, employees and customers. We are committed to diligently working for all of our stakeholders to achieve the best possible outcome from this process," said
Carl E. Lakey, Chief Executive Officer and President of Delta.
The Company anticipates that its current and future cash resources will be sufficient to pay its court expenses and maintain its business operations in the short-term. Additionally, the Company will seek Court approval of a debtor in possession (DIP) financing facility of
$57.5 million arranged by it to address longer term liquidity needs as it works through the bankruptcy process.
The Company is also seeking, and expects to receive, approval from the Bankruptcy Court for a variety of other motions it will file, including, but not limited to, requests to pay employee wages, salaries and employee benefits, royalty interest owners, and vendors who are to the continued operation of the Company's business.
ABOUT DELTA PETROLEUM
Delta Petroleum Corporation is an oil and gas exploration and development company based in
Denver, Colorado. The Company's core area of operation is the Piceance Basin in the Rocky Mountain region, which comprise the majority of its proved reserves, production. Its common stock is listed on the NASDAQ Global Market System under the symbol "DPTR."