The Street-

California Resources  (CRC) – Get Report filed for protection from creditors in Chapter 11 of bankruptcy law after the oil and gas producer was overwhelmed by imploding oil prices brought on by the coronavirus-pandemic shutdown.

The Santa Clara, Calif., company, which filed a prearranged restructuring in U.S. Bankruptcy Court for the Southern District of Texas, said it had reached an agreement for a $1.1 billion debtor-in-possession financing package.

The restructuring will eliminate more than $5 billion of debt. Term lenders have agreed to backstop a $450 million equity-rights offering and a $200 million second-lien exit-financing facility

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