Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Seventy Seven Energy Chapter 11 Petition, Plan Filed

Seventy Seven Energy (a/k/a Chesapeake Oilfield Operating) and ten affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-11409 (Seventy Seven Finance). The Company, which provides oil and gas wellsite services and equipment, is represented by Robert J. Dehney of Morris, Nichols, Arsht & Tunnell. The Company concurrently filed a Joint Prepackaged Chapter 11 Plan of Reorganization and related Disclosure Statement, which provides for a substantial deleveraging transaction pursuant to which approximately $1.1 billion of the Company's outstanding debt will be converted to equity. This Chapter 11 filing follows completion of the solicitation process 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, (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 Company's Plan, a key component of which is that all trade creditors, suppliers and contractors will be paid in the ordinary course of business. According to the Company, all of its 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.

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