Sable Permian files Chapter 11 plan of reorganization and liquidation

By Sarah Lizee

Olympia, Wash., Dec. 2 – Sable Permian Resources, LLC filed its Chapter 11 plan and related disclosure statement on Tuesday in the U.S. Bankruptcy Court for the Southern District of Texas.

The debtors are seeking to reorganize and liquidate, according to the disclosure statement.

Under the plan, holders of other secured claims, including vendors with valid liens senior to the credit agreement claims or secured notes claims, will receive payment in full in cash.

Holders of other priority claims will receive payment in full in cash.

Holders of debtor-in-possession new money claims will receive their pro rata share of the $315 million of exit revolving and term loans or cash equal to their claims, at the election of holders. Details of the exit facilities will be filed in a plan supplement, the company said.

Holders of DIP roll-up claims will receive their pro rata share of the exit revolver or the exit term loan, at the option of holders.

Holders of RBL credit facility secured claims will receive their pro rata share of the new common equity pool, and excess exit revolving loans or exit term loans, at the option of holders.

Holders of RBL credit facility secured claims will have the opportunity to become effective date cash out sellers, selling all or a portion of the new common equity they would otherwise be entitled to receive under the plan to the cash-out buyers at a price to be determined.

Holders of secured notes claims will receive their pro rata share of the secured notes cash collateral remaining after the payment of ad hoc group fees and expenses and the secured notes indenture trustee fees and expenses. They will also receive their pro rata share of the secured notes IP recovery.

Holders of RBL credit facility deficiency claims will receive their pro rata share of the Sable Land cash pool.

Holders of secured notes deficiency claims and unsecured notes claims will receive their pro rata share of new warrants.

Holders of general unsecured claims against Sable Land will receive their pro rata share of the Sable Land cash pool.

Holders of intercompany claims, intercompany equity interests, existing equity interests and general unsecured claims against the liquidating debtors will not receive any distribution or retain any property on account of their claims.

Sable is a Houston-based oil and gas acquisition, development, and optimization company. The company filed bankruptcy on June 25, 2020 under Chapter 11 case number 20-33193.

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