DENBURY INC

18 Sept 2020listing compliance notice▲ GoodMajor

the exchange certified DENBURY INC's securities for listing, clearing them to begin trading.

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4 Sept 2020bankruptcy or receivership▼ BadMajor

On 2 September 2020 the bankruptcy court confirmed Denbury's Chapter 11 plan. When the plan takes effect, all existing common stock (507,063,311 shares at 31 July 2020) will be cancelled and existing debt discharged. Second lien holders receive 95% of the new stock and convertible holders 5% plus Series A Warrants; existing shareholders get only a share of 45.45% of the Series B Warrants. The company targets the effective date of 16 September 2020 but gives no assurance. Bank lenders are to be paid in full or left unimpaired, and a management incentive plan of up to 10% of new equity is to be adopted.

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17 Aug 2020listing compliance notice● NeutralMajor

DENBURY INC's exchange filed to remove a class of its securities from listing.

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5 Aug 2020listing compliance notice▼ BadMajor

On 31 July 2020, because of the Chapter 11 filing, the NYSE began delisting proceedings and suspended trading of Denbury's common stock. The stock began trading on the OTC Pink market as DNRCQ the same day. Denbury does not intend to appeal. This ends the earlier below-$1.00 listing issue, since the stock is leaving the NYSE regardless, and the company says the OTC market is more limited and likely less liquid.

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31 July 2020bankruptcy or receivership▼ BadMajor

On 30 July 2020 Denbury and all its wholly owned subsidiaries filed voluntary Chapter 11 petitions in the Southern District of Texas, as contemplated by the earlier support agreement, and will keep operating as debtors-in-possession. The filing is an event of default that accelerated the company's debt, including $230.0m of bank borrowings plus $94.7m of letters of credit, $584.7m of 9% second lien notes, $455.7m of 9¼% second lien notes, $531.8m of 7¾% second lien notes, $225.7m of 6⅜% convertible notes and the subordinated notes, though enforcement is automatically stayed. The company warns that trading in its securities is highly speculative and prices may bear little relation to any recovery.

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29 July 2020material agreement▼ BadMajor

On 28 July 2020 Denbury signed a Restructuring Support Agreement with its bank lenders (100%), and holders of about 67.2% of its second lien notes and about 70.8% of its 6⅜% convertible notes, to restructure through a prepackaged Chapter 11 plan. Under the plan, second lien holders get 95% of the new stock and convertible holders get 5% plus Series A Warrants. Existing shareholders would receive only a share of 45.45% of the Series B Warrants, and only if both the subordinated notes class and the existing equity class vote to accept. The bank lenders agreed to provide up to $615m of debtor-in-possession financing that would roll into an exit facility. This follows the skipped June interest payment and the 'strategic alternatives' review, which have now resolved into this filing-for-bankruptcy route.

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30 June 2020debt financing▼ BadMajor

On 26 June 2020 Denbury signed an Eighth Amendment to its bank credit agreement. It reaffirmed the $615m borrowing base but temporarily cut maximum availability to $275m plus outstanding letters of credit (up to $100m) until the fall 2020 redetermination, and added temporary dollar limits on certain covenant baskets. Denbury also chose not to pay the roughly $8m interest due 30 June 2020 on its 6⅜% convertible notes due 2024 'to evaluate certain strategic alternatives', none implemented yet. A 30-day grace period applies before it becomes an event of default. It drew $200m on the credit facility on 29 June as a precaution, leaving $265m borrowed and about $95m of letters of credit. Skipping the interest payment and drawing the facility is a negative signal for shareholders and raises the risk to their position; the filing does not say what the alternatives are.

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6 Mar 2020listing compliance notice▼ BadMajor

On 5 March 2020 the NYSE told Denbury its average share price over 30 trading days was below $1.00, the minimum for listing. Denbury has six months to cure, and says it is considering options including a reverse stock split, which needs board and stockholder approval. The shares keep trading as DNR with a '.BC' (below compliance) marker, and the company says the notice does not trigger any violation of its debt obligations. Failure to cure could lead to delisting.

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