Seventy Seven Energy Officially Files for Bankruptcy

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From a press release:
Seventy Seven Energy Inc. (the “Company”) today announced that it has filed a pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. As previously announced, the Company’s pre-packaged plan provides for a substantial deleveraging transaction pursuant to which approximately $1.1 billion of the Company’s outstanding debt will be converted to equity. The Chapter 11 reorganization is expected to conclude within 60 days. 
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. The solicitation process resulted in overwhelming approval of the pre-packaged plan presented by the Company. 
"The successful completion of the solicitation process and today’s filing represent the next step forward in our financial restructuring,” Chief Executive Officer Jerry Winchester said. “The support of all of our stakeholders will allow our Company to expedite the reorganization process and maximize our operational strengths and assets to grow our business as the market recovers.”
Continue reading this release by clicking here.

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