Business Context and Reporting Period
This Form 8-K was filed by Midstates Petroleum Company, Inc. on June 29, 2016. The company, along with its subsidiary Midstates Petroleum Company LLC (collectively the "Debtors"), is currently undergoing reorganization under Chapter 11 of the United States Bankruptcy Code in the Southern District of Texas. The filing reports the entry into a First Amendment to a Plan Support Agreement with certain lenders.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the legal and procedural timeline of the bankruptcy reorganization rather than operational financial performance.
Material Changes
The primary material change is the extension of key milestones within the Debtors' Chapter 11 reorganization plan via the First Amendment to the Plan Support Agreement. Specific timeline adjustments include:
- Disclosure Statement Order: Extended from June 23, 2016, to July 14, 2016.
- Confirmation Order: Extended from July 28, 2016, to August 19, 2016 (if no objections from the unsecured creditors committee) or September 2, 2016 (otherwise).
- Final Cash Collateral Order: Extended from June 9, 2016, to July 1, 2016.
- Emergence from Chapter 11: Extended from August 12, 2016, to September 17, 2016.
- Termination Rights: The date for Requisite Second Lien Noteholders to terminate the 2nd/3rd Lien Plan Settlement was extended to September 17, 2016. The date for individual consenting parties to terminate the agreement was extended to February 9, 2017.
Outlook, Risks, and Management Commentary
The filing indicates that the reorganization process requires additional time to secure necessary court orders and manage creditor objections. The extension of the emergence date to September 17, 2016, suggests a delay in the company's return to normal operations. Risks include the potential for the unsecured creditors committee to object to the plan, which would push the Confirmation Order deadline to September 2, 2016, and the possibility of parties terminating the agreement if the effective date is not met by the new deadlines.
Investor Verification Checklist
- Verify the status of the Disclosure Statement Order by July 14, 2016.
- Monitor for any objections filed by the committee of unsecured creditors, which would alter the Confirmation Order timeline.
- Confirm the entry of the Final Cash Collateral Order by July 1, 2016, to ensure continued liquidity.
- Review the full text of the First Amendment to Plan Support Agreement (Exhibit 10.1) for additional covenants or conditions not summarized in the 8-K.
- Track the company's progress toward the new emergence date of September 17, 2016.