OKLAHOMA CITY, Sept. 9, 2016 /PRNewswire/ — SandRidge Energy, Inc. (“SandRidge” or the “Company”) today announced that its Plan of Reorganization (the “Plan”) was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas. The Plan received overwhelming support from its stakeholders and its confirmation enables the Company to target emergence from Chapter 11 within the next 30 days, eliminating $3.7 billion in pre-petition funded indebtedness.
New SandRidge Capital Structure
The Company’s pro forma capital structure will consist of an undrawn $425 million first lien credit facility (maturing in 2020) and $300 million in mandatorily convertible zero coupon debt that will convert into equity. Finally, SandRidge will issue new common stock to its pre-petition second lien and general unsecured creditors representing 100% of the pro forma equity interest in the reorganized company.
Projected Liquidity at Emergence
The Company anticipates that it will emerge and the Plan will become effective within 30 days, at which time the Company estimates to have over $400 million of liquidity including cash on hand and funds available under its first lien credit facility.
James Bennett, SandRidge President and CEO remarked, “The confirmation of our plan is a milestone event toward the restructuring of our business, attributable to the tireless work of many individuals. I would like to acknowledge and thank our dedicated employees for their unwavering focus and high-level performance throughout the reorganization process. It’s also important to express my appreciation to our vendors and other stakeholders for their cooperation and support. We look forward to continuing these relationships as we work together to grow our business.”
“Finally, I would like to express my personal thanks to our Board of Directors for their years of service and recent efforts to ensure a smooth and timely process,” Bennett continued.
Jeff Serota, SandRidge Chairman of the Board and Chairman of the Restructuring Committee of the Board, remarked, “Key to completing our restructuring in a timely manner was the early recognition by our stakeholders of the long-term value inherent in the company. SandRidge worked constructively with its creditors and other constituents to achieve plan approval and is now set to emerge from bankruptcy as a stronger company.”
Court filings and other information related to the restructuring proceedings are available at a website administered by the Company’s claims agent, Prime Clerk, at https://cases.primeclerk.com/sandridge or via the information call center at (844) 276-3028 (toll free) or 1+(917) 962-8498 (international). The Company also previously posted FAQs on its website at www.sandridgeenergy.com/restructuring .
Houlihan Lokey, Inc. is serving as financial advisor to SandRidge and Kirkland & Ellis LLP is serving as legal counsel.
About SandRidge Energy, Inc.
SandRidge Energy, Inc. is an oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma with its principal focus on developing high-return, growth-oriented projects in the U.S. Mid-Continent and Niobrara Shale.