US-based SandRidge Energy has filed for bankruptcy protection after securing support for its debt-cutting plan from many major creditors.
The company filed petitions under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of Texas.
The petitions aimed to consummate a pre-arranged reorganisation by way of a restructuring support agreement, which will involve converting about $3.7bn of debt into equity.
SandRidge anticipates that it can continue funding ongoing operations and programmes throughout Chapter 11, and will not require additional financing afterwards.
As part of the petition, the company has filed first day motions, which will enable its day-to-day operations to continue as usual.
SandRidge president and CEO James Bennett said: "The new capital structure will allow the company to concentrate on oil and gas exploration and development in our active Oklahoma and Colorado project areas.
"We look forward to completing this next phase of the process quickly with minimal disruption to our business."
SandRidge chairman of the board Jeff Serota: "Constructive dialogue with each major funded debt constituency and an efficient negotiating process have led to today’s announcement.
"We appreciate the efforts of our creditors and their advisors and commend the diligent efforts of management and our employees, as well as our advisors and Restructuring Committee in getting to this point."
