Sheridan Holding pre-packaged reorganization plan confirmed by court

By Caroline Salls

Pittsburgh, March 25 – Sheridan Holding Co. I, LLC’s pre-packaged plan of reorganization was confirmed on Tuesday by the U.S. Bankruptcy Court for the Southern District of Texas.

According to the disclosure statement describing the plan, the plan contemplates equitization of Sheridan’s secured debt, a take-back exit facility and a conditional distribution of the new warrants to limited partners.

Specifically, the plan reduces pre-bankruptcy debt by about $470 million and refinances the remainder of the debtors’ secured debt with a $150 million exit facility.

The reorganized debtors will seek bids for the sale of some asset packages to facilitate a winddown of the debtors’ assets.

Under the plan, holders of administrative claims and other priority claims will receive payment in full in cash.

Revolving lenders and term lenders will receive new term loans under the exit facility, new Sheridan equity and excess balance sheet cash, if any.

General unsecured claims will be reinstated or paid in full in cash.

Sheridan is an oil and gas company based in Houston. The company filed bankruptcy on March 23 under Chapter 11 case number 20-31884.

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