Chaparral Energy has filed for Chapter 11 protection in U.S. Bankruptcy Court in Delaware, three months after warning that a drop in commodity prices threatened its ability to remain in business.

“While we have taken carefully measured and decisive action to address the challenges of 2020, the overall impact to the energy industry, including Chaparral, has been severe,” chief executive officer Chuck Duginski said in a statement. “A swift restructuring will right-size our balance sheet, improve our cost structure, and best position Chaparral for the future.”

It is the second bankruptcy filing for Chaparral in four years.

Chaparral said it expects to significantly delever and restructure its balance sheet by equitizing all $300 million of its existing unsecured bond obligations. It said it will bolster its liquidity position through $175 million in lending obligations under a reserves-based exit facility. Chaparral said holders of about 78% of its first-lien credit facility and about 78% of holders of its 8.75% senior notes due 2023 have agreed to vote in favor of a prepackaged plan.

The Oklahoma City-based, which operates in the Andarko Basin, had cash on hand of approximately $32 million on August 14, which will allow it to maintain operations through the restructuring. It previously terminated all outstanding derivative contracts in connection with the forbearance by its lenders.

Chesapeake Energy, California Resources, and Whiting Petroleum are among the energy companies that have filed for bankruptcy protections in recent months.

In April, Brent crude traded below $19 per barrel for the first time since 2002 as the COVID-19 crisis reduced demand and a price war between Saudi Arabia and Russia led to a supply glut.

Chaparral’s shares were trading at 39 cents on Monday. The company’s investment bankers have said the existing equity has no value.

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