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Delta Petroleum (DPTR) Files Chapter 11

December 16, 2011 8:11 AM EST
Delta Petroleum Corporation (Nasdaq: DPTR) has filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

"After reviewing all of our alternatives, the Company's management and Board of Directors, working in consultation with outside legal and financial advisors, unanimously determined that the Chapter 11 process would provide the opportunity for the best result for our creditors, shareholders, suppliers, employees and customers. We are committed to diligently working for all of our stakeholders to achieve the best possible outcome from this process," said Carl E. Lakey, Chief Executive Officer and President of Delta.

The Company anticipates that its current and future cash resources will be sufficient to pay its court expenses and maintain its business operations in the short-term. Additionally, the Company will seek Court approval of a debtor in possession (DIP) financing facility of $57.5 million arranged by it to address longer term liquidity needs as it works through the bankruptcy process.


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