Venoco’s restructuring plan was approved July 13, enabling it to get out from under $1 billion of debt it incurred following the shutdown of Plains All American Pipeline’s Line 901 after the May 2015 Refugio oil spill.
Under the proposal, approved by the U.S. Bankruptcy Court for the District of Delaware, the company expects to complete its restructuring by the end of July and retain its current leadership. Founder and former owner Tim Marquez received a minority stake in the new company after going private on Oct. 3, 2012.
“The court’s approval today marks another step forward in our efforts to address the challenges before us and strengthen our position for long-term success,” CEO Mark DePuy said in a statement.
The restructuring positions the company to withstand the continued closure of Line 901 and below-expected oil prices, DePuy said.
Venoco reported a net loss of $464.4 million in its year-end 2015 filings published June 6, compared to net income of $120.4 million in 2014. It had cash and cash equivalents of $15.5 million in 2014 and $90.2 in 2015, operating income of $60.7 million, compared to $224.2 million the prior year, and total assets of $295.3 million, down from $616.3 million.
The company continued normal oil and gas operations in Ventura and Santa Barbara counties during its restructuring. It paid $4.7 million in property and production taxes for the year, down from $7.6 million in 2014.
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