Vendor Frequently Asked Questions

1. Why did White Star file Chapter 11?
   • We have taken this action to give White Star the flexibility to maximize the value of our Company as an ongoing business.
   • Like many other exploration and production companies, White Star’s financial position has been significantly impacted by continued low oil and natural gas prices, and general uncertainty in the energy market.
   • The Court-supervised restructuring process is designed to protect the value of the Company while we address our balance sheet and liquidity needs.
2. What is Chapter 11?
   • Chapter 11 refers to the section of the U.S. Bankruptcy Code that covers court-supervised restructurings of businesses. A company that files for protection under Chapter 11 is allowed to continue to operate and maintain its business “in the ordinary course” – or business as usual.
   • The Chapter 11 filing provides the company with time – and protection from its prepetition creditors – while it develops a plan to restructure its balance sheet, reorganize its operations, or run a sales process.
3. What happens during Chapter 11?
   • Upon the filing of a bankruptcy case an “automatic stay” is imposed that prevents creditors from collecting money and debts owed on a prepetition basis by the filing company. The automatic stay allows the company to delay loan payments, as well as payments owed to vendors for goods and services received before the filing. A major benefit of Chapter 11 is that it permits daily operations to continue:
     • company facilities will stay open;
     • employees will continue to receive their regular wages and benefits; and,
     • goods and services purchased after the filing date will be paid for in the “ordinary course of business."
   • While operations continue, White Star’s management will continue to engage in constructive discussions with our lenders regarding the terms of a consensual financial restructuring plan. We intend to move through this process as quickly as possible.
4. Will the existing leadership and Board of Directors remain in place?
   • Yes, the current management team and Board of Directors will remain in place and continue to be committed to the business.
5. How will the restructuring process affect day-to-day operations?
   • Importantly, we will continue normal business operations during this process.
   • We believe we have sufficient liquidity to support the business during this process.
   • We intend to continue working closely with our suppliers and paying for goods and services under normal terms on or after the date of the filing.
   • We are committed to the partnership we have developed with you and your organization.
   • We have taken this action to strengthen our Company’s capital structure and address our balance sheet, allowing us to operate more efficiently in the future and making us a stronger business partner going forward.
6. How will White Star be financed during Chapter 11?
   • We believe we have sufficient liquidity to support the business during this process.
   • Concurrently with filing, the Company entered into a $28.5 million Debtor in Possession Credit Facility to provide liquidity for operations throughout the Chapter 11 process. $15 million of this $28.5 million will be immediately available, with the remainder becoming available after additional approval from the court.
7. Will suppliers be paid for goods and services they provide to White Star on or after the filing date?
   • White Star intends to pay suppliers for all goods and services received on or after the filing date of May 28, 2019 under normal terms.
   • U.S. bankruptcy law affords administrative priority treatment to claims incurred after a debtor has commenced bankruptcy cases—including during the bankruptcy case.
8. Will suppliers be paid for goods and services they provided to White Star prior to the filing date?
   • U.S. bankruptcy law provides that unpaid debts for goods and services provided to White Star prior to the filing date of May 28, 2019, also known as “pre-petition claims,” cannot be paid without specific Bankruptcy Court approval.
   • However, under section 503(b)(9) of the bankruptcy code, the Company may be able to pay administrative expense claims for goods received within 20 days of the Chapter 11 filing date.
   • Any pre-petition claims will be addressed as part of the process moving forward.
   • If you believe you have a pre-petition claim for goods and services provided to White Star, you may need to file a proof of claim with the Bankruptcy Court to be eligible for payment on your claim. Information about the claims process will be made available at a later date.
9. Why should I continue to provide you with goods and services?
   • All goods and services provided while White Star is in Chapter 11 will be paid in the ordinary course of business. U.S. bankruptcy law affords administrative priority treatment to claims incurred after a debtor has commenced bankruptcy cases—including during the bankruptcy case.
   • We value the partnership we have developed with your company and plan to work closely with you throughout this process. We have taken this action to establish a sustainable capital structure and make us a stronger business partner going forward.
   • Your cooperation throughout this process will help ensure that we can continue working together for many years to come.
10. How can I obtain more information?
    • If you have further questions about the restructuring, please do not hesitate to reach out to your usual contact at White Star. Additional information is also available on our corporate website and at a website maintained by the Company’s claims agent athttp://www.kccllc.net/whitestar.