GMX RESOURCES INC., Endeavor Pipeline Inc. And Diamond Blue Drilling Co. Seek Protection Through Chapter 11 Bankruptcy Filings
Pursuing Asset Purchase Agreement with Senior Secured Noteholders
Company Secures Financing to Fund Operations During Proceedings
OKLAHOMA CITY, Okla., April 1, 2013 (GLOBE NEWSWIRE) -- GMX RESOURCES INC . , (NYSE:GMXR); an oil and gas exploration and production company with assets in the Williston Basin, East Texas Basin and Denver Julesburg ("DJ") Basin announced today that it has filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court (the "Bankruptcy Court") for the Western District of Oklahoma. In connection with this petition, GMXR is pursuing an asset purchase agreement with holders of its Senior Secured Notes due 2017 who own a majority of these secured notes (collectively referred to below as the "Principal Senior Secured Noteholders") to acquire substantially all of the Company's operating assets and undeveloped acreage. The Company's joint venture, Endeavor Gathering LLC, in which the Company owns a 60% membership interest, is not included in the filing.Upon finalizing the contemplated asset purchase agreement with the Principal Senior Secured Noteholders, the sale will then be subject to a public auction and receipt of competing, and potentially higher and better offers, pursuant to procedures to be approved by the Bankruptcy Court. Over the past year, the Company implemented various strategic initiatives to increase oil production, improve supply chain and production efficiencies, and reduce costs to increase cash flow. While these operating initiatives resulted in some success, natural gas commodity prices have remained low, and the Company's oil and gas operations require ongoing additional capital expenditures. To meet these financial requirements, the Company has actively sought financing alternatives to solve its liquidity needs. The Company has been unsuccessful in finding any viable funding solution to meet its long-term liquidity needs. Based on discussions with the Company's various creditor groups and advice from the Company advisors, the Company believes that the rights and protections afforded under a court-supervised reorganization process, including access to financing and a proposed sale of the Company assets, will provide the Company the ability to meet its immediate financial needs to preserve the value of assets and to provide for the greatest recovery to its stakeholders.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts