Oklahoma based Sandridge Energy has filed for Chapter 11 bankruptcy protection. The company took the action this morning, according to a news release from the company. Sandridge says the action was "pre-arranged" and that business will continue as it works to reorganize.
Below is the Sand Ridge news release:
On May 16, 2016, SandRidge Energy, Inc. (the “Company”) announced that it has voluntarily filed petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the “Chapter 11”) to consummate a “pre-arranged” reorganization through a restructuring support agreement (the “Restructuring Support Agreement”) with its creditors. The Restructuring Support Agreement contemplates an RBL facility and the equitization of approximately $3.7 billion of other funded indebtedness.
The Company projects having ample liquidity to fund its ongoing operations and its capital programs throughout the Chapter 11 and upon emergence thereafter, without the need for debtor-in-possession financing or other additional capital.
As part of the Chapter 11, SandRidge has filed “first day” motions that, when granted, will enable the Company’s day-to-day operations to continue as usual. Specifically, the Company requested authority to pay operating expenses associated with production activities, joint interest billings for non-operated properties, royalty and working interest owners, and lienholders, as well as employee wages and benefits without change or interruption. Additionally, the Company will pay all suppliers and vendors in full under normal terms for goods and services provided during the Chapter 11 cases.