Sabine Oil & Gas plan confirmed; unsecured creditors committee appeals

By Caroline Salls

Pittsburgh, July 28 – Sabine Oil & Gas Corp.’s second amended Chapter 11 plan of reorganization was confirmed Thursday by the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the company will enter into an exit revolving credit facility with initial commitments equal to $200 million. Interest will be based on utilization and will range from Libor plus 300 basis points to Libor plus 400 bps.

Sabine will also enter into a new $150 million second-lien credit facility, which will bear interest at Libor plus 1,000 bps with a 1% floor and mature on Dec. 31, 2021.

The holders of RBL secured claims will receive 93% of the new common stock in the reorganized company, holders of second-lien adequate protection claims will receive tranche 1 warrants and holders of second-lien deficiency claims, 2017, 2019 and 2020 senior notes claims and general unsecured claims will share in the remaining 2% of the new common stock and 100% of tranche 2 warrants.

Holders of existing equity interests will receive no distribution.

According to a separate notice filed Thursday, the company’s official committee of unsecured creditors appealed the plan confirmation order.

Formerly Forest Oil Corp., Sabine is an oil and gas company based in Houston that filed for bankruptcy on July 15, 2015. The Chapter 11 case number is 15-11835.

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