(Bloomberg) -- Whiting Petroleum Corp., the shale driller that went bankrupt at the start of this month, formalized a restructuring deal that would cut more than $2.3 billion of debt and hand control of the company to creditors.
The Denver-based company agreed to give a 97% stake in the reorganized company to its noteholders, according to a statement. Whiting had disclosed support for its proposed restructuring plan and the equity handover when it filed for bankruptcy earlier this month.
Existing shareholders will get 3% of the new shares, according to the statement. The company's revolving credit facility and unsecured claims will be paid in full.
The case is Whiting Petroleum Corporation, 20-32021, U.S. Bankruptcy Court for the Southern District of Texas (Houston).
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