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Seventy Seven Energy RSA Approved

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The U.S. Bankruptcy Court approved Seventy Seven Energy’s motion for authorization to (i) assume a restructuring support agreement and (ii) pay and reimburse related fees and expenses. As previously reported, “The terms of the Restructuring Support Agreement provide for a substantial de-leveraging of approximately $650 million of debt under the OpCo Notes and $450 million of debt under the HoldCo Notes into 100% equity in Reorganized HoldCo….The restructuring contemplated by the Term Sheet and the Plan will reduce the Debtors’ funded debt obligations by at least $1.1 billion and incorporates the following principal terms: (1) A new senior secured asset-based revolving loan and letter of credit facility, which facility shall have a maturity date of June 25, 2019 and a maximum commitment amount of $100 million. The first lien debt will include financial covenants and other terms and conditions, including those set forth in the Exit Facility Commitment Letter, which is attached to the Disclosure Statement as Exhibit G. (2) A conversion of $1.1 billion in aggregate principal amount of OpCo Notes and HoldCo Notes into 100% of the New HoldCo Common Shares (subject to dilution for the issuance of the New A Warrants, the New B Warrants, the New C Warants and shares issued under the Management Incentive Plan).” Read more oil & gas bankruptcy news.