SandRidge Energy's Chapter 11 Plan of Reorganization confirmed by court

SandRidge Energy Inc.’s Plan of Reorganization was confirmed by the US Bankruptcy Court for the Southern District of Texas. The company is working to emerge from Chapter 11 within the next 30 days, eliminating $3.7 billion in pre-petition funded indebtedness.

The company voluntarily filed petitions under Chapter 11 of the US Bankruptcy Code in May.

New SandRidge capital structure

The company's pro forma capital structure will consist of an undrawn $425 million first lien credit facility (maturing in 2020) and $300 million in mandatorily convertible zero coupon debt that will convert into equity. Finally, SandRidge will issue new common stock to its pre-petition second lien and general unsecured creditors representing 100% of the pro forma equity interest in the reorganized company.

Projected liquidity at emergence
The company anticipates that it will emerge and the plan will become effective within 30 days, at which time the company estimates to have over $400 million of liquidity including cash on hand and funds available under its first lien credit facility.

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