Sabine Oil & Gas Files for Bankruptcy

Sabine Oil & Gas Corporation announced Wednesday that it has filed for bankruptcy in order to facilitate the restructuring of its balance sheet.

The company is currently in "constructive discussions" with its lenders and debt holders regarding the terms of a consensual financial restructuring plan and is focused on "achieving a resolution as expeditiously as possible", according to a Sabine press release. Sabine Oil & Gas expects that its cash on hand, combined with funds generated from ongoing operations, will provide sufficient liquidity to support the business during the balance sheet restructuring process. 

Commenting on the latest development, Sabine President and Chief Executive Officer David Sambrooks said in a company statement:

"The actions we are announcing today represent an important step forward in our efforts to strengthen the company's capital structure. Following a comprehensive review of our alternatives, the board of directors and management team determined that this process would produce the best outcome for Sabine and its stakeholders. Undertaking this process provides an orderly path forward to better align the company's balance sheet with changing market dynamics.

"We remain committed to maintaining operational excellence and executing within our current strategy and importantly, we fully expect to continue operating in the ordinary course. We want to thank our employees for their continued dedication during this time as well as our service providers and suppliers for their ongoing support. We intend to emerge with increased financial flexibility and a sustainable capital structure that will enable us to devote capital to grow our business."

The news follows Sabine's announcement last month that it would be deferring a $21 million interest payment.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Scottish Government Reveals New Subsea... (Jan 20)
 -  SOFF Secures Services Contract for Jan... (Jan 20)
 -  NPD Grants Lundin Permit for Appraisal... (Jan 20)
 -  Lion: AMT-1 Well Abandoned After Stuck... (Jan 20)
 -  Unite: Workers 'Deeply Unhappy' About ... (Jan 20)


Most Popular Articles

From the Career Center
Jobs that may interest you
CFO/ Senior Financial Manager
Expertise: Accounting|Financial Analyst
Location: Carrizo Springs, TX
 
Sr. Accounting Specialist- Revenue, Severance Tax
Expertise: Accounting
Location: Houston, TX
 
Sr. Accountant / Accounting Specialist, Revenue Accounting
Expertise: Accounting
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $55.49/BBL 2.45%
Light Crude Oil : $52.42/BBL 2.04%
Natural Gas : $3.2/MMBtu 5.04%
Updated in last 24 hours