Sanchez Energy granted 90-day exclusivity extension to negotiate plan

By Caroline Salls

Pittsburgh, Jan. 8 – Sanchez Energy Corp. received an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

Specifically, Sanchez’s exclusive filing period was extended by 90 days through March 9 and the solicitation period through May 8.

The company said the debtors believe that, because of their efforts thus far in the Chapter 11 cases, they are now positioned to negotiate a successful restructuring with their key stakeholders in the coming weeks and months.

Sanchez said it expects to begin plan-related negotiations with key stakeholders, including the official committee of unsecured creditors and informal groups of holders of the company’s secured and unsecured notes, after it finalizes a revised business plan, which was expected to be completed in mid-December.

“The debtors submit that a 90-day extension of the exclusive periods is appropriate so as to afford the debtors additional time to attempt to negotiate a consensual plan of reorganization with their key creditor constituencies, and to ultimately propose and solicit such a plan, and to continue the administration of these Chapter 11 cases, without the disruption and delay that would be caused if the court were to deny the debtors’ request,” the motion said.

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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