Houston-based Sabine Oil & Gas Corp. (OTCQB: SOGC) announced on July 15 that the company filed voluntary Chapter 11 bankruptcy relief petitions to allow for the restructuring of its balance sheet.
According to a statement from the company, it plans to conduct business as usual during the restructuring process and does not anticipate changes in day-to-day operations. Sabine expects that its cash on hand and funds from ongoing projects will support the business until the balance sheet has been restructured.
“We remain committed to maintaining operational excellence and executing within our current strategy — and importantly, we fully expect to continue operating in the ordinary course,” Sabine President and CEO David Sambrooks said in a statement. “We intend to emerge with increased financial flexibility and a sustainable capital structure that will enable us to devote capital to grow our business.”
The energy exploration and production company said in the statement that is was significantly impacted by the recent decline in oil prices and had substantial debt obligations that forced it to restructure.
According to the Chapter 11 filing with U.S. Bankruptcy Court for the Southern District of New York, Sabine had approximately $2.48 billion in assets and $2.91 billion in liabilities as of May 31.
Earlier this year, Sabine failed to file its annual report on time. The company has had issues dating back to 2014 with its complicated, rejiggered merger with Colorado-based Forest Oil Corp.
Shortly after the merger was adjusted, the Sabine CFO resigned, although the company said the two matters were unrelated.
Hamilton, Bermuda-based Lazard Ltd. (NYSE: LAZ) is serving as financial advisor to Sabine during the restructuring process. Chicago-based Kirkland & Ellis LLP is serving as legal counsel.
Sourced from bizjournals.com July 15th, 2015.