SandRidge Expects to Get Back on Its Feet After Bankruptcy

by San Antonio Attorney

SandRidge Energy has announced that it is expecting to leave bankruptcy as early as September.

The energy exploration company, which is headquartered in Oklahoma, had to let go hundreds of employees at the start of 2016. SandRidge also closed many disposal wells that allegedly caused earthquake in northern Oklahoma. Eventually, it filed for Chapter 11 bankruptcy in May.

Based on documents filed with a government regulator, SandRidge management laid out their reorganization plan for almost $4.4 billion in liabilities and exit bankruptcy.

The reorganization plan includes the termination of common stock and some preferred stock. The company will create a $425 million credit facility, and also a $35 million, five-year finance on the SandRidge city center headquarters building. In addition, senior debtholders are going to receive stock in the newly restructured company.

The reorganization is subject for the bankruptcy court’s approval. A hearing is slated to start September 6.

Despite the bankruptcy case, SandRidge business operations have continued without interruption. In the last quarter, the company’s losses were roughly $500 million, but that is a substantial development compare to last year’s losses, which was three times that figure.

SandRidge Energy Inc., which was once a leading energy companies in America, has been struggling with the slump of oil prices for several months.

Experts in the industry say that in 2016  about 175 oil-and-gas producers worldwide are at risk of filing bankruptcy, and the circumstances are almost as terrible for another 160 companies, a number of them in the United States.

Most of the energy companies facing fiscal pressure are small to midsize producers of shale and the service businesses that do the drilling work. Funded by very low interest debt from Wall Street, these energy companies quickly expanded over the last ten years as the United States opened enormous new oil-and-gas reserves with latest technologies like hydraulic fracturing.

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