Energy XXI Files For Chapter 11 Bankruptcy - Quick Facts

(RTTNews) - Oil and gas company Energy XXI Ltd. (EXXI) announced Thursday that it has filed for bankruptcy protection.

Energy XXI and certain of its subsidiaries have entered into a Restructuring Support Agreement or RSA with holders of more than 63% of the Company's secured second lien 11.0% notes on the material terms of a balance sheet restructuring plan. The company expects this to strengthen its financial position by reducing long-term debt and enhancing financial flexibility.

In order to implement the terms of the RSA, the Company commenced cases under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.

In pre-market activity, Energy XXI shares were losing around 75.16 percent.

Through the Chapter 11 restructuring, Energy XXI will eliminate more than $2.8 billion in debt from its balance sheet, substantially deleverage its capital structure and position the Company for long-term success.

The RSA also provides that John Schiller will continue as the reorganized company's Chief Executive Officer and a member of its board of directors.

Energy XXI expects operations to continue as normal throughout the court-supervised financial restructuring process, including paying royalty and surety obligations in the ordinary course.