Seventy Seven Energy Plans to File for Bankruptcy

by San Antonio Attorney

Seventy Seven Energy Inc., a provider of oilfield services, revealed on April 19, 2016 that it will seek Chapter 11 bankruptcy protection. It also said that the company has entered a restructuring arrangement with some of its creditors, making Seventy Seven Energy the most recent sufferer of the energy-price slump.

The bankruptcy plan of Seventy Seven involves turning into a new company and converting debt into common shares.

According to Seventy Seven Energy, its operations will not be affected and that they will pay their workers, contractors and suppliers during the bankruptcy process.

The company has agreed with some of its lenders that the latter’s $650 million 2019 note shall be given 96.75% of the new company’s common stock, which will be issued after other lenders have voted. Holders of the 2022 note worth $450 million will decide on whether to approve 3.25% of the new common stock and deserves worth as much as 15% of the company’s value.

Seventy Seven energy plans to commence a prepackaged Chapter 11 bankruptcy on May 26 or earlier. By Friday, the company will start the solicitation process.

Lately, the energy prices have been going down. Because of that, the oil field activities declined affecting Seventy Seven’s customers and services.

Filing for bankruptcy allows you to discharge your business or personal debt.  You can also stop creditor harassment and start focusing on how to resolve you financial problems.

The solutions to debt problems are not as devastating as they appear. Talk to a bankruptcy attorney, and discuss your situation.

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