Sanchez Energy Corp., Houston, and certain of its subsidiaries have voluntarily filed for reorganization under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of Texas.
“The company’s decision to make this voluntary filing follows an extensive review of strategic alternatives to align its capital structure with the continued low commodity price environment,” Sanchez said.
Sanchez intends to use the process to reduce its indebtedness and provide the financial flexibility to position the company for future success, the company said.
The company has liquidity comprised of cash-on-hand and $175 million in new committed financing to operate in the normal course and intends to interact with its commercial counterparties as usual.
Nonrecourse subsidiary SN EF UnSub LP and certain other unrestricted subsidiaries are not included in these Chapter 11 proceedings, it said.
