Sabine Oil & Gas files joint reorganization plan, disclosure statement

By Mark Reccek

Bethlehem, Pa., Jan. 26 – Sabine Oil & Gas Corp. filed its joint Chapter 11 plan of reorganization and related disclosure statement on Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Treatment of creditors will include the following:

• Holders of other priority claims will receive cash payment in full;

• Holders of other secured claims will receive either payment in full, reinstatement or other such recovery;

• Holders of RBL claims will receive a pro rata share of loans and commitments under the exit revolver credit facility, unless the facility is financed by one or more third-party lenders, loans under the new second lien credit agreement, RBL equity pool and all cash held by other debtors;

• Holders of convenience claims will receive cash;

• Holders of section 510 (b) claims will have their claims discharged and canceled;

• Holders of intercompany claims will be reinstated or canceled and no distribution made;

• Holders of intercompany interests will be reinstated or canceled and no distribution made; and

• Holders of Sabine equity interests will have their claims canceled and no distribution will be made.

Also, holders of RBL deficiency, second-lien, senior notes and general unsecured claims will receive a pro rata share of the unsecured equity pool.

Formerly Forest Oil Corp., Sabine is an oil and gas company based in Houston that filed for bankruptcy on July 15. The Chapter 11 case number is 15-11835.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.