Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Delay of Filing

On May 7, 2020, we filed a Current Report on Form 8-K giving notice that we intended to delay the filing of our 10-Q for the fiscal quarter ended March 31, 2020. We relied on the SEC order (SEC Release 34-88465), to delay the filing of our 10-Q.

Standstill and Amendment Agreement

To facilitate the negotiation of proposals regarding the company's capital structure and the Chapter 11 restructuring, the company, UPC, UDC, BOKF, NA dba Bank of Oklahoma, and the RBL Lenders entered into a Standstill and Amendment Agreement on March 11, 2020 regarding the Unit credit facility, which delayed the scheduled borrowing base redetermination for the facility until the expiration of a standstill period and under which the RBL Lenders agreed not to exercise certain of their rights and remedies under the Unit credit facility. The standstill period was set to expire on April 15, 2020 and was ultimately extended to May 22, 2020. For further information, please see Note 2 – Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern—Liquidity, Unit Credit Facility and Debtor-in-Possession Credit Agreement.

Voluntary Reorganization Under Chapter 11 of the Bankruptcy Code

On May 22, 2020, the Debtors filed the Bankruptcy Petitions seeking relief under the Bankruptcy Code. We expect to continue operations in the normal course during the pendency of the Chapter 11 Cases. For further information, please see Note 2 – Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern—Voluntary Reorganization Under Chapter 11 of the Bankruptcy Code.

Debtor-in-Possession Credit Agreement

On May 27, 2020, the Debtors entered into the DIP credit agreement with the RBL Lenders (in such capacity, the DIP Lenders) and BOKF, NA dba Bank of Oklahoma, as administrative agent, under which the DIP Lenders agreed to provide the company with the $36.0 million multi-draw loan facility. On June 19, 2020, the the Bankruptcy Court granted final approval of the DIP credit facility. For further information, please see Note 2 – Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern—Liquidity, Unit Credit Facility and Debtor-in-Possession Credit Agreement.

Interest Payment Deferral on the Notes

On May 15, 2020, the company elected not to make the approximate $21.5 million semi-annual interest payment due on the Notes. For further information, please see Note 8 – Long-Term Debt and Other Long-Term Liabilities—Long-Term Debt—6.625% Senior Subordinated Notes.

Reduction in Force

In April 2020, we initiated a plan to reduce the number of employees in our organization in an effort to lower operating costs and restructure our business. We announced and communicated a reduction in personnel in our corporate offices as well as certain field office locations. As a result, we expect to incur incremental costs for severance related to our former employees.

Delisting of Our Common Stock from the NYSE

On May 26, 2020, trading in our common stock on the New York Stock Exchange (NYSE) was suspended because of the Debtors’ filing of the Chapter 11 Cases. Effective May 27, 2020, trades in our common stock began being quoted on the OTC Pink Market under the symbol “UNTCQ”. On June 10, 2020, the NYSE filed a Form 25 to delist our common stock and to remove it from registration under Section 12(b) of the Exchange Act.