(Reuters) - Oil and gas producer Bonanza Creek Energy (N:BCEI) said it would file for bankruptcy on or before Jan. 5, joining a long list of energy companies that have succumbed to a drop in oil prices.
The Denver-based company said bondholders would eliminate $850 million in debt and that some would provide $200 million in new equity.
Bonanza Creek's shares were down 47.5 percent at $1.01 before the opening bell on Friday.
Global oil prices (LCOc1) have fallen more than 50 percent since mid-2014, eroding cash flows of oil producers and crimping their ability to meet debt and interest payments.
Earlier this month, Stone Energy Corp (N:SGY) filed for Chapter 11 bankruptcy and said it would eliminate about $1.2 billion in debt by transferring control of the company to its noteholders.