Wilmington Trust objects to SandRidge Energy’s disclosure statement

By Sheri Kasprzak

New York, July 13 – Wilmington Trust, NA entered an objection against SandRidge Energy, Inc.’s disclosure statement, alleging the plan does not provide holders of the 8.125% convertible senior notes or 7.5% convertible senior notes with a claim, according to an objection entered July 13 in the U.S. Bankruptcy Court for the Southern District of Texas.

“Wilmington Trust notes that the plan does not purport to substantively consolidate the debtors’ estates, yet, despite the existence of the guarantees against each of the guarantors under the convertible indentures, the plan appears to provide holders of the convertible notes with a single claim against all of the debtors, effectively eliminating claims based on the guarantees or ascribing no value to them,” the objection said.

Wilmington Trust is a successor indenture trustee for SandRidge’s 7.5% convertible senior notes due 2023 and 8.125% convertible senior notes due 2022.

“Although neither the plan nor the disclosure statement specifically says so, allowance of the unsecured not claims in the amount of $2,349,000 would appear to either eliminate claims based on the guarantees against the guarantors or ascribe no value to them,” the objection said.

SandRidge, an oil and natural gas company based in Oklahoma City, filed for bankruptcy on May 16. The Chapter 11 case number is 16-32488.

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