Oil-field-services provider Seventy Seven Energy Inc. is preparing to get out of bankruptcy after a judge agreed to approve a reorganization plan that would give the Oklahoma company access to up to $100 million in a new borrowing deal.
Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court in Wilmington, Del., said in court Wednesday that she would give Seventy Seven Energy permission to put its reorganization plan into action. The plan would allow bondholders owed $1.1 billion to take over most of the ownership in the company, which provides drilling, hydraulic fracturing and oil-field-rental services to exploration and production companies.
“By converting all of the funded bond debt to equity under the plan and structuring the exit facility on the [current terms and conditions], [Seventy Seven Energy and its affiliates] have the means to withstand the volatility endemic in the current commodity market,” Chief Financial Officer Cary Baetz said in earlier court documents.
Under the company’s reorganization plan, its unsecured debt would be fully paid. Shareholders would receive warrants for 20% of new common stock.Read more by clicking here.
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