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
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.
