Seventy Seven Energy Completes Reorganization Process Under Chapter 11 Bankruptcy

by San Antonio Attorney

Seventy Seven Energy Inc. announced on Aug. 2 that it has exited bankruptcy after successfully completing its Chapter 11 prepackaged reorganization. According to the company, the Chapter 11 plan was approved by the U.S. Bankruptcy Court for the District of Delaware in July.

The reorganization plan included conversion of about $1.1 billion of debt into equity. Seventy Seven Energy’s operation was not disrupted by the bankruptcy proceedings, the company said.

The company was able to access $100 million funding for its bankruptcy.  The reorganization plan paid off all unsecured debts.

Seventy Seven Energy is hopeful that its common stock will be traded in the near future.

The company suffered from the abrupt fall in natural gas prices due to excessive availability.  Since 2015, about of 85 gas and oil producers in North America have declared bankruptcy.

The surplus of oil in the market stifled revenue.  Court documents show that the company’s returns fell by $1 billion last year.

The company cut its workforce from around 4,400 workers in 2014 to approximately 1,500 workers as of March 31.

The Oklahoma-based oilfield services provider has the largest land drilling fleet in the U.S.  The company provides a variety of wellsite services and equipment to United States land exploration and energy production clients.  Its services include hydraulic fracturing, drilling and oilfield leases.

The company was created about two years ago, after Seventy Seven Energy separated from Chesapeake Energy Corp.

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