DENVER, 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."
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this announcement are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking
statements include, without limitation, the length and outcome of
the bankruptcy process, the availability of financing and rulings
of the bankruptcy court. Readers are cautioned that all
forward-looking statements are based on management's present
expectations, estimates and projections, but involve risks and
uncertainty, including without limitation, uncertainties in the
bankruptcy process, the ability to obtain debtor in possession
financing, the length of time that the Company will be in
bankruptcy, the amount of claims that might be asserted against the
bankruptcy estate, the potential for adverse rulings by the
bankruptcy court, as well as general market conditions, competition
and pricing. Please refer to the Company's report on Form
10-K for the year ended December 31,
2010 and subsequent reports on Forms 10-Q and 8-K as filed
with the Securities and Exchange Commission for additional
information. The Company is under no obligation (and
expressly disclaims any obligation) to update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise.
For further information contact the Company at (303) 293-9133 or
via email at info@deltapetro.com
SOURCE Delta Petroleum Corporation