SandRidge Energy Files For Bankruptcy

(RTTNews) - SandRidge Energy, Inc. (SDOC.PK) said that it has voluntarily filed petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas to consummate a "pre-arranged" reorganization through a restructuring support agreement entered into with holders of approximately (i) 98% in principal amount outstanding under the Company's reserve-based lending facility, (ii) 79% in principal amount of the Company's second lien notes, and (iii) 55% in principal amount of the Company's senior unsecured notes.

The Restructuring Support Agreement contemplates an RBL facility and the equitization of approximately $3.7 billion of other funded indebtedness. Under the Agreement, the Company's pro forma capital structure will consist of $425 million in first lien RBL debt (maturing in 2020), and $300 million in mandatorily convertible debt that will accrue interest on a non-cash basis and convert into equity in the reorganized Company at the earlier of certain conversion events or four years from the effective date of the Chapter 11 plan of reorganization.