Halcón Resources Corp.

Halcón entered into a restructuring support agreement with certain holders of its 6.75% senior unsecured notes due 2025, representing 67.3% of the amount of unsecured notes currently outstanding. The agreements entered into under the RSA will result in a comprehensive restructuring of the company’s balance sheet to be implemented through the commencement of chapter 11 cases. The restructuring plan, if implemented, will result in the elimination of more than $750 million of debt and an ongoing reduction in annual interest expense of more than $40 million.  The restructuring plan provides the company significant additional liquidity and minimizes operational disruptions by ensuring trade creditors will be paid in full.

The terms of the RSA provide that holders of the company’s $625 million outstanding unsecured notes will receive 91% of the common stock of reorganized Halcón and existing common shareholders will receive 9% of the new common shares (each prior to dilution from a new money common stock rights offering and a management incentive plan).  Existing common shareholders will also be granted warrants that provide them with the opportunity to purchase up to 30% of the New Common Shares at prices based on Unsecured Noteholders achieving certain recovery levels.  As part of the transaction, the Unsecured Noteholders have also committed to backstop $150 million of a $165 million new money equity rights offering of New Common Shares (the “Rights Offering”) on a pro rata basis.