Sabine Oil & Gas asks court to extend cash collateral use to May 15

By Caroline Salls

Pittsburgh, Feb. 29 – Sabine Oil & Gas Corp. asked the U.S. Bankruptcy Court for the Southern District of New York to extend its cash collateral use expiration date to May 15, according to a motion filed Monday.

Sabine is also asking the court to allow further extensions with the consent of the company and first-lien agent to June 15 and July 16 without the need for further court approval.

“The debtors are only requesting an extension of the status quo that was agreed to and implemented under the final cash collateral order so they may continue to operate their business and, more importantly, emerge from Chapter 11,” Sabine said in the motion.

Specifically, the company said continued use of cash collateral is necessary to maintain encumbered wells, which represent the bulk of its assets.

A hearing is scheduled for March 14.

Formerly Forest Oil Corp., Sabine is an oil and gas company based in Houston that filed for bankruptcy on July 15, 2015 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 15-11835.

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