Sanchez Energy gets interim court approval for ‘first-day’ motions

By Caroline Salls

Pittsburgh, Aug. 19 – Sanchez Energy Corp. announced Monday that it received interim approvals from the U.S. Bankruptcy Court for the Southern District of Texas for several “first-day” motions related to the Chapter 11 cases filed on Aug. 11.

“We are pleased to have received approval of our First Day motions, which will enable Sanchez Energy to continue normal operations while we maintain productive relationships with our business partners and midstream counterparties,” president and chief executive officer Tony Sanchez III said in a news release.

“Our focus is on operating our business safely and efficiently without interruption while using the restructuring process to work diligently with our creditors on a plan to right-size our balance sheet, further invest in our high-quality asset base and generate long-term value for our stakeholders.”

In addition to the previously reported interim approval to access $50 million of debtor-in-possession financing, the company said it obtained court approval to continue to operate in the normal course of business without interruption to its relationships with its vendors, royalty interest owners and working interest and joint billing partners, among others allowing Sanchez to pay most pre-bankruptcy obligations owed to those parties.

In connection with the restructuring, Sanchez Energy is represented by Moelis & Co. as financial adviser, Akin Gump Strauss Hauer & Feld LLP and Jackson Walker LLP as legal counsel and Alvarez & Marsal as restructuring adviser.

Sanchez is a Houston-based oil and gas exploration and production company. The company filed bankruptcy on Aug. 11 under Chapter 11 case number 19-34508.

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