Sundance Energy combined plan, statement hearing slated for April 19

By Sarah Lizee

Olympia, Wash., March 11 – Sundance Energy Inc.’s combined hearing on approval of its disclosure statement and confirmation of its pre-packaged Chapter 11 plan is scheduled for April 19, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company said it filed bankruptcy to effectuate a restructuring transaction that will strengthen the company’s balance sheet and best position it for sustained future success.

Sundance entered into a restructuring support agreement with the administrative agent and holders of 100% of the outstanding loans under its pre-petition reserve-based revolving credit facility, and the administrative agent and holders of 100% of the outstanding loans under the pre-petition term loan facility.

The parties agreed to support the company’s pre-packaged plan of reorganization, which provides for a debt-for-equity exchange that will eliminate over $250 million of funded debt obligations from the company’s balance sheet.

Under the pre-packaged plan, existing equity interests would be canceled on the effective date and holders of existing equity interests are not expected to receive any consideration or distributions on account of such interests.

In addition, the plan contemplates that unsecured trade creditors will be paid in full.

Upon emergence, the company’s recapitalized balance sheet will include $137.5 million of funded debt comprising a senior secured reserve-based revolver, a senior secured second-out term loan, and, if necessary, a senior secured third-out term loan, in each case provided by the existing revolver lenders, and new common equity interests issued in exchange for debtor-in-possession financing claims and term loan claims, subject to dilution by new common equity interests granted under a new management incentive plan.

Denver-based Sundance Energy is an independent energy exploration and production company. The company filed bankruptcy on March 9 under Chapter 11 case number 21-30882.

© 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.