Investor FAQs

As stated in the Company’s press release issued on Oct 27th, 2020, according to the restructuring plan approved by the United States Bankruptcy Court for the Southern District of Texas, CRC’s previous shares of common stock (ticker symbol “CRCQQ”; CUSIP 13057Q206) have been cancelled and are entitled to no recoveries. The Company issued new common stock that began trading on the NYSE (ticker symbol “CRC”; CUSIP 13057Q305) on October 28th, 2020.

The original Restructuring Support Agreement (RSA) that was filed with the SEC as a form 8-K on July 16, 2020 disclosed the following:

“Under the terms of the Plan contemplated by the RSA, (i) holders of claims on account of the RBL Facility will be paid in full; (ii) the 2017 Term Loan Claims will be bifurcated into a stipulated secured claim and a stipulated deficiency claim, where holders of the stipulated secured claim will receive 91% of the common stock in the Reorganized CRC (subject to dilution) and 91% of the subscription rights offered under the equity rights offering; (iii) holders of stipulated deficiency claims on account of the 2017 Term Loan Claims will be combined with the holders of the 2016 Term Loan Claims, the Second Lien Notes Claims and claims on account of the Debtors Unsecured Notes into a single “Deficiency/Unsecured Debt Claims” class which will receive 9% of the common stock in the Reorganized CRC (subject to dilution) and 9% of the subscription rights offered under the equity rights offering (excluding those subscription rights reserved to the parties backstopping the equity rights offering); (iv) (x) if the class of Deficiency/Unsecured Debt Claims votes to accept the Plan, then the Debtors will continue to pay or dispute all other general unsecured claims in the ordinary course of business and (y) if the class of Deficiency/Unsecured Debt Claims votes to reject the Plan, the holders of all general unsecured claims (including the Deficiency/Unsecured Debt Claims) will receive 9% of the common stock in the Reorganized CRC (subject to dilution) and 9% of the subscription rights offered under the equity rights offering (excluding those subscription rights reserved to the parties backstopping the equity rights offering); and (v) existing equity interests in CRC will receive no recoveries. Additionally, the Debtors have, pursuant to the RSA, entered into a settlement and assumption agreement with the Ares Entities, as discussed below.”

“Treatment of Existing Equity Interests: Existing equity interests in CRC will be cancelled, released, and extinguished, and will be of no further force or effect.”

During the restructuring process, the most current version of the Restructuring Plan was available at https://dm.epiq11.com/case/californiaresources/documents in the folder labeled Disclosure Statement and Plan. The most recent version can be found in Exhibit A of Docket No. 626 dated October 13, 2020.

Additional information can be accessed by emailing [email protected] or by calling 888-848-4754. The Company has also posted FAQs, Court filings and other information at https://dm.epiq11.com/CaliforniaResources.

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