Seventy Seven Energy Inc. filed a pre-packaged plan of reorganization under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Oklahoma City, OK-based oilfield services provider noted plans to file Chapter 11 in April in order to implement a Restructuring Support Agreement. The pre-packaged plan provides for a deleveraging transaction pursuant to which approximately $1.1 billion of the company’s outstanding debt will be converted to equity.
The filing follows the completion of the solicitation process, which began on May 9 of (i) lenders representing the company’s Incremental Term Supplement (Tranche A) loan, (ii) lenders representing the company’s $400 million Term Loan Credit Agreement dated June 25, 2014, (iii) noteholders of the company’s 6.625% senior unsecured notes due 2019 and (iv) noteholders of the 6.50% senior unsecured notes due 2022.
All trade creditors, suppliers, and contractors will be paid in the ordinary course of business. All of the company’s commercial and operational contracts will remain in effect in accordance with their terms preserving the rights of all parties, and customer relationships will continue uninterrupted.