SandRidge to Evaluate Options Including Bankruptcy
SandRidge Energy Inc said on Wednesday it had engaged advisers to evaluate options including a private restructuring or reorganization under Chapter 11.
The company said there was substantial doubt about its ability to continue as a going concern. (http://1.usa.gov/1SwIoGL)
A more than 60 percent fall in oil prices since mid-2014 has eroded cash flows at several oil and gas producers, leaving them struggling to service debt payments.
SandRidge, which is working with law firm Kirkland & Ellis and investment bank Houlihan Lokey on debt restructuring options, has drawn down its revolving credit line, and has tried to trim costs with asset sales and job cuts.
Reuters reported in January that the heavily indebted oil and gas company has been exploring debt restructuring options, including a pre-packaged bankruptcy.
Oklahoma City-based SandRidge, which reported results on Tuesday after delaying the filing, had about $3.63 billion in total debt as of Dec. 31.
SandRidge, which produces oil and gas from shale formations in Oklahoma and Kansas, was founded in 2006 by Tom Ward, who also co-founded natural gas company Chesapeake Energy Corp . Ward was ousted as chief executive in 2013 by SandRidge's board after a proxy fight with shareholders.
(Reporting by Arathy S Nair in Bengaluru)
