Davis Polk advised an ad hoc group of holders of the second-lien notes of SandRidge Energy, Inc. in connection with the successful chapter 11 restructuring of SandRidge Energy, Inc. and its affiliates (collectively, “SandRidge”). On September 9, 2016, SandRidge’s plan of reorganization (the “Plan”), which Davis Polk played a leading role in structuring and negotiating, was confirmed by the Bankruptcy Court for the Southern District of Texas. The confirmed Plan became effective today, with SandRidge’s emergence from bankruptcy.

Before SandRidge’s May 16, 2016, bankruptcy filing, Davis Polk represented the ad hoc group in negotiating and agreeing to a Restructuring Support Agreement with SandRidge and a substantial amount of first-lien lenders and unsecured bondholders. The terms of the Plan were further negotiated with the unsecured creditors’ committee, and the resulting Plan was confirmed over the objection of an ad hoc group of equity holders. Under the Plan, the second-lien noteholders will receive 83.5% of the new common stock of the reorganized company. The first-lien creditors receive participation in a new $425 million first-lien exit facility and $35 million in cash, while unsecured creditors receive 16.5% of new common stock in the reorganized company along with other consideration.

SandRidge is an oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma, with its principal focus on developing high-return, growth-oriented projects in the U.S. Mid-Continent and Niobrara Shale.

The Davis Polk insolvency and restructuring team included partners Damian S. Schaible and Eli J. Vonnegut and associates Christopher Robertson, Sarah E. Levin, Erik Jerrard and Thomas D. Malinowsky. The corporate team included partner Kirtee Kapoor and associates Bryan M. Quinn, Hua Zhao and Dongbiao Shen. Members of the Davis Polk team are based in the New York and Northern California offices. 

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