Seventy Seven Energy Term Lender Group supports prepackaged chapter 11
Clients Seventy Seven Energy Inc. Term Loan Lenders
Jones Day represented a group of term loan lenders and Wilmington Trust, N.A., in its capacity as Term Loan Agent, before and during the prepackaged chapter 11 cases of oilfield services company, Seventy Seven Energy.
On July 13, 2016, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court confirmed Seventy Seven Energy's prepackaged chapter 11 plan of reorganization after a largely uncontested confirmation hearing and only 37 days after the company filed for bankruptcy.
Pursuant to the Plan, the Term Loan continued in effect subject to certain amendments, including a shortened maturity, an enhanced collateral package, and other significant protections for the Term Loan Lenders. The company is also equitizing $1.1 billion of unsecured debt pursuant to the Plan. The Plan went effective on August 1, 2016 upon the occurrence of the conditions precedent to the effectiveness of the Plan, including the execution and closing of the Term Loan Credit Amendment and related documents. The company recently announced it will be acquired by Patterson-UTI Energy in a transaction that will result in the repayment in full of their loans plus accrued interest for the Term Loan Lenders.