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The Distressed Debt Rescue

When a major US shale producer faced bankruptcy, OilNational structured a $500M rescue financing package. We provided debtor-in-possession funding secured by proven reserves, allowing the company to complete pending wells and emerge from restructuring with a healthy balance sheet.

Challenge

Traditional banks had abruptly pulled credit lines due to falling oil prices, leaving the producer unable to pay suppliers or complete drilled-but-uncompleted (DUC) wells. Assets were at risk of being liquidated at fire-sale prices by vulture funds, which would have destroyed all remaining equity value for existing stakeholders and employees.

Solution

OilNational designed a bespoke reserve-based lending facility with flexible repayment terms tied directly to commodity price hedges, protecting the borrower from further volatility. We took an active board seat to oversee capital allocation, ensuring funds were used strictly for high-ROI completion activities rather than overhead. This disciplined approach stabilized production within months, restored lender confidence, and allowed the company to refinance its debt on favorable terms, emerging stronger than before the crisis.

Global energy investment, executed with institutional precision.

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