November 21, 2019
Approach Resources has court approval to dip into new financing as it moves through the bankruptcy process, a debtor-in-possession financing arrangement.
The North Texas O&G driller can access more than $40 million in post-petition funding, now that a judge in the Bankruptcy Court for the Southern District of Texas at Houston has given the okay, according to Law360.
Of this, $16.5 million is new cash coming in, “in order for the company to continue operating and so that it can cover its bankruptcy expenses,” according to Deep Value‘s Daniel Jones.
“The remaining $24.75 million is in the form of a roll-up refinancing for some of its debts.”
Ft. Worth-based Approach filed for bankruptcy on Monday, saying it will explore a restructuring of its balance sheet, a going-concern sale of its business and other alternatives while under chapter 11 protection, The Wall Street Journal noted.
The company has drilling operations in West Texas, having acquired oil and gas properties in the Permian Basin since 2004.