Case Study:
Galveston Bay Properties, LLC
Guided Offshore E&P Company Through Successful Exit from Bankruptcy as Chief Restructuring Officer
A member of Harney Partners (Greg Milligan) was appointed as Chief Restructuring Officer of Galveston Bay Properties, LLC, an E&P company with approximately 20,000 acres under lease from the State of Texas in the shallow waters of the Gulf of Mexico with 124 well bores and 23 producing wells during the case.
The Solution
Debtor filed Chapter 11 after a hurricane damaged its offshore equipment in the Gulf of Mexico and impaired its production capabilities.
Almost four months after the Chapter 11 filing, no tangible process had been made toward a feasible plan of reorganization.
Greg Milligan was appointed as Chief Restructuring Officer, with the support of several key stakeholders, to guide the company to a successful exit from bankruptcy.
The Results
Less than two weeks after his appointment as CRO, Milligan was able to finalize and file a Plan and Disclosure Statement that had been previously draft by the company’s counsel.
Seventy-five (75) days after appointment as CRO, a plan was confirmed that converted certain bridge loans to equity and infused a like amount of money into the reorganized debtor to provide the necessary liquidity.
This conversion of debt to equity and cash infusion from an international capital partner gave that party a controlling stake in the company.
The confirmed plan allowed the company to exit bankruptcy with full payment to all creditors, and all necessary regulatory approvals, and sufficient liquidity to return to pre-storm production levels.
Services & Roles
Turnaround and Restructuring
Bankruptcy Advisory
Fiduciary Services
Chief Restructuring Officer
*Some engagements may have been performed by team prior to joining Harney Partners.
