Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Emergence from Bankruptcy

On May 22, 2020, the Debtors filed the Bankruptcy Petitions seeking relief under the Bankruptcy Code. In accordance with the RSA, the Debtors filed the Plan and the related disclosure statement with the Bankruptcy Court on June 9, 2020. On August 6, 2020, the Bankruptcy Court entered the Confirmation Order confirming the Plan and approving the disclosure statement on a final basis. On the Effective Date, the company emerged from the Chapter 11 Cases after satisfying or waiving the remaining conditions to effectiveness contemplated under the Plan.

On August 21, 2020, the Debtors agreed, subject to Bankruptcy Court approval, to settle the claims asserted in two class action lawsuits that are stayed as a result of the Chapter 11 Cases. For the lawsuit styled as Cockerell Oil Properties, Ltd. v. Unit Petroleum Company, the Debtors agreed to settle for an allowed claim amount of $15.75 million and for the lawsuit styled as Chieftain Royalty Company v. Unit Petroleum Company, the Debtors agreed to settle for an allowed claim amount of $29.25 million. Both settled claims will be treated as general unsecured claims and the holders will receive their pro rata share of the common stock of reorganized Unit (New Common Stock) allocated to holders of general unsecured claims against UPC, as set forth in the Plan.

Termination of Deferred Compensation Plan

On August 7, 2020, we elected to terminate our salary deferral plan effective on emergence from bankruptcy. We reported these obligations in other long-term liabilities and the underlying investment accounts as other long-term assets in our Unaudited Condensed Consolidated Balance Sheets. The total amount due to plan participants as of June 30, 2020 was $6.0 million. These amounts were subsequently distributed to the plan participants.