Sabine Oil & Gas Corporation has confirmed that its Chapter 11 Plan of Reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of New York July 27, is now effective and revealed that it has emerged from bankruptcy as a private company.
In conjunction with its emergence from Chapter 11, the company closed on its new senior secured credit facility, which has commitments of $200 million and an initial borrowing base of $150 million, and on its new $150 million second lien term loan.
The company completed an effective balance sheet restructuring that involved a debt-for-debt exchange, a debt-to-equity conversion, and the issuance of warrants to purchase stock in the newly-formed parent holding company of the reorganized company. Sabine emerged from bankruptcy with a “significantly stronger” balance sheet and “renewed ability to focus on creating value from its compelling asset base,” according to a company statement.
“Sabine has successfully restructured its balance sheet, addressing its leverage and liquidity needs,” said Sabine Chief Executive Officer David Sambrooks.
“Throughout this process we have valued and appreciated the support and guidance of our outgoing board of directors as well as our professional advisors. Above all, I am humbled by the dedication and outstanding effort of our employees, and have great optimism for the next chapter of our organization. We look forward to working under the guidance of our new, remarkably experienced board to create value for our new ownership group.”
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