Sandridge Energy Inc. filed for Ch-11 bankruptcy in the U.S. Bankruptcy Court of Houston on reaching a debt-to-equity swap agreement with creditors. The swap would give its existing creditors control of the re-organized company.
Sandridge, which is the latest victim of falling oil prices, intends to finance its operations without securing a bankruptcy or a DIP loan. The company intends to conduct business normally whilst undergoing restructuring and intends to pay its operating expenses associated with production activities, royalties and wages to its workers and also intends to pay all of its suppliers and vendors.
At the time of filing for bankruptcy, the company had assets of $7bn and debt of about $4bn.
SandRidge is advised by law firm Kirkland & Ellis LLP, which is handling the chapter 11 case, and Houlihan Lokey Inc. is the company’s financial adviser.