Actionable news
0
All posts from Actionable news
Actionable news in UPL: ULTRA PETROLEUM Corp,

SandRidge Energy - Bankruptcy Possible Within 30 Days

Summary

We believe SandRidge Energy (SD) (SDOC) could file for Chapter 11 bankruptcy as early as Friday, May 6, 2016.

Likely will file by no later than Wednesday, June 1, 2016; we believe this latter date to be a near certainty.

The filing, it is our belief, is entirely contingent on the speed at which “final mile” talks with one very large, very particular party progress.

It’s our belief, based on comprehensive mock-“re-valuation” analysis that nothing below the Second Lien at SandRidge Energy will see anything of recovery.

We believe SandRidge Energy (NYSE:SD) (OTCPK:SDOC) could file for Chapter 11 bankruptcy as early as Friday, May 6, 2016 but likely will file by no later than Wednesday, June 1, 2016. We believe this latter date to be a near certainty. The filing, it is our belief, is entirely contingent on the speed at which "final mile" talks with one very large, very particular party progress.

Two days ago we heard rumors from multiple, credible, very "plugged in" sources that SandRidge Energy was in "final mile" talks with a special creditor/debtholder. We were told this creditor/debtholder was Franklin; yes, that Franklin. Franklin owns hundreds of millions of dollars of SandRidge Energy's now nearly entirely "out of the money" cap structure, including a portion of its Second Lien (aka its 8.75% Senior Secured Notes due 2020, including mandatory prepayment feature liabilities of $2,941 (in thousands) and net of $29,842 discount (in thousands) - which at December 31, 2015 totaled a whopping ~$1.3 billion).

A look at all SandRidge Energy debt issues traded within the last 360 days:

This morning Reuters appears to be hearing substantially similar rumors to those we heard days ago; again, we believe...


More