Sable Permian Resources secures confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Jan. 29 – Sable Permian Resources, LLC’s Chapter 11 plan was confirmed on Friday by 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 $315 million of exit facilities, which may consist of tranche A revolving and tranche B term loans, or cash equal to their claims, at the election of holders.

JPMorgan Chase Bank, NA is the lead arranger, bookrunner and administrative agent for the exit facilities.

Loans will bear interest at Libor plus 300 basis points.

The facilities will mature on Feb. 1, 2025.

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 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 waive any distribution that they otherwise be entitled to receive on account of their claims.

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 Permian Resources, Sable Permian Resources Operating, LLC and Sable Land will receive their pro rata share of the applicable distribution pool.

Holders of intercompany claims, intercompany equity interests, existing equity interests and general unsecured claims against the other 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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