Warren Resources Exits Bankruptcy, Turned $545M Debt into Equity

Warren ResourcesWarren Resources, a small driller that drilled and brought online their first two Marcellus Shale wells last year, is based in Houston and operates in California, Colorado, Wyoming and Pennsylvania. In February MDN told you that Warren missed an important $7.5 million payment, the first ominous signal of what was to come (see Warren Resources Misses $7.5M Debt Payment, 30-Day Clock Ticking). The next week the company announced no new drilling, anywhere, in 2016–hinting they might have to file for bankruptcy (see Warren Resources: Potential Bankruptcy, No Drilling in 2016). That happened, in June (see Warren Resources Files for Bankruptcy, Wiping Out Stockholders). Yesterday Warren announced it has emerged from bankruptcy proceedings and ready to continue on. Warren had over $545 million in debt that they magically waved the bankruptcy wand over and turned into equity (stock ownership). In the process, previous stockholders/owners got nothing–their shares became worthless…

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