Finance - Restructuring
Samson suspended drilling new wells before filing for bankruptcy, Reuters reported.
Oilfield services still face bankruptcy threat, but rest of industry relatively in the clear for this year.
In conjunction with its emergence from Chapter 11, Sabine closed on its new senior secured credit facility.
If Sandpiper Pipeline Project is snuffed, supply-and-demand balance in Bakken could arrive sooner, East Daley analysts say.
Analysts’ report describes massive amount of maturing, expiring debt facing oilfield services sector.
Vendors, royalty owners and other parties will be paid in ordinary course.
The case has been unusually contentious, with Sabine and its lenders squaring off against the official committee of unsecured creditors, led by Aurelius Capital Management, Reuters reported.
If the RSA is completed, Atlas Resource Partners’ debt will be reduced by about $900 million, and its interest expense will be reduced by $80 million, per year.
The proposed recapitalization is intended to be implemented through a corporate plan of arrangement under the Canada Business Corporations Act.
The company will swap equity for debt forgiveness, and partners such as Nabors Industries will see a vastly reduced stake in the company.
A tight pre-bankruptcy process is the key to ultimately having a successful reorganization.
"The successful completion of the solicitation process and today's filing represent the next step forward in our financial restructuring," CEO Jerry Winchester said, Reuters said.