Sundance Vitality Takes Action to Reinforce Equilibrium Sheet and Posture Small business for Sustained Long term Achievement, Commences Fiscal Restructuring With Loan provider Guidance
Corporation initiates voluntary, prepackaged Chapter 11 process that will eliminate in excess of $250 million of funded financial debt obligations
Chapter 11 method predicted to conclude in somewhere around 60 days
All functions to proceed as regular employees, vendors, royalty proprietors, and other trade creditors to continue on getting paid in total in the normal system of business
Enters Chapter 11 method with at least $45 million of committed DIP financing
DENVER, March 09, 2021 (Globe NEWSWIRE) — Sundance Electricity Inc. (NASDAQ: SNDE) and its affiliates (“Sundance” or the “Company”), an onshore unbiased oil and all-natural gasoline corporation targeted on the enhancement of significant, repeatable resource plays in North The united states, right now introduced that it has filed for voluntary Chapter 11 safety in the U.S. Bankruptcy Court for the Southern District of Texas to effectuate a transaction that will reinforce the Company’s harmony sheet and greatest position Sundance for sustained potential results. All functions will carry on as normal without the need of interruption and the Chapter 11 system is expected to conclude in close to 60 times.
On March 9, 2021, Sundance entered into a Restructuring Guidance Settlement (the “RSA”) with the administrative agent below its prepetition reserve-based mostly revolving credit rating facility (the “RBL Facility”), holders of 100% of the fantastic principal volume of revolving loans under the RBL Facility, the administrative agent under the prepetition term bank loan (the “Term Loan Facility”), and holders of 100% of the superb principal quantity of expression loans under the Phrase Financial loan Facility, whereby the events agreed to assist the Company’s prepackaged program of reorganization (the “Prepackaged Plan”) beneath Chapter 11 of the U.S. Individual bankruptcy Code. The Prepackaged Prepare supplies for a personal debt-for-equity exchange that will get rid of more than $250 million of funded credit card debt obligations from the Company’s balance sheet. Implementation of the Prepackaged Approach will improve Sundance’s money composition, enabling it to emphasis on main competencies with out the stress of servicing considerable debt degrees.
With the significant help of its loan providers, implementation of the Prepackaged Plan will enable the Company to speedily and efficiently recapitalize its equilibrium sheet and reorganize as a personal entity with no content effects on the bulk of its lenders. Under the Prepackaged Program, which stays issue to approval by the Personal bankruptcy Courtroom and consummation, present fairness interests would be cancelled on the productive day and holders of current equity passions are not predicted to get any consideration or distributions on account of these types of passions.
The Corporation has also secured commitments from certain of its Time period Loan lenders for at the very least $45 million in debtor-in-possession (“DIP”) funding that, together with ordinary working money flows and the consensual use of dollars collateral, will fund usual-system operations and reorganization charges. On emergence, the Company’s recapitalized stability sheet will consist of (i) $137.5 million of funded indebtedness comprising a senior secured reserve-based mostly revolving credit facility, a senior secured next out time period personal loan, and, if necessary, a senior secured 3rd out time period bank loan, in every single circumstance supplied by the present RBL Facility lenders and (ii) new widespread equity pursuits issued in exchange for DIP financing promises and Time period Mortgage statements, subject to dilution by new widespread fairness interests granted underneath a new administration incentive program.
“Sundance has confronted numerous difficulties in the very last couple yrs resulting in declining hard cash movement and liquidity that have only been exacerbated by the unprecedented COVID-19 pandemic and volatility in the sector rate of crude oil and all-natural gasoline,” mentioned Eric McCrady, Sundance’s Chief Executive Officer. “As a consequence, we are having decisive action to address these troubles and deleverage our stability sheet to best situation our enterprise for sustained potential achievement. We are grateful for the assistance of our creditors all through this process and anticipate that the consensus already obtained will simplify our path by Chapter 11 and help us to arise with a strengthened monetary framework.”
Sundance expects to keep on operations uninterrupted by means of the Chapter 11 approach. The Organization has submitted customary motions with the Bankruptcy Court trying to find authority for Sundance to continue on operations in the common class, such as, but not constrained to, shelling out employees and continuing existing reward courses, spending royalty owners and distributors in the regular training course, and assembly commitments to consumers, such as crude potential buyers. The Firm has also submitted a customary movement searching for to implement fairness buying and selling methods in an energy to protect the value of the Company’s tax attributes. This sort of motions are usual in the Chapter 11 method and Sundance anticipates that they will be listened to and accredited in the initially handful of days of the Chapter 11 instances. In addition, the RSA and Prepackaged Strategy ponder that unsecured trade creditors will be compensated in whole under the Prepackaged Strategy.
For a lot more facts about the Company’s Chapter 11 situation, make sure you go to https://situations.primeclerk.com/sundanceenergy or call Key Clerk, the Company’s noticing and claims agent, at (877) 470-4340 for U.S./Canadian phone calls or (347) 919-5764 for global phone calls, or by emailing [email protected].
Sundance is represented in this make any difference by Latham & Watkins LLP, Hunton Andrews Kurth LLP, Miller Buckfire & Co., LLC, and FTI Consulting Inc.
About Sundance Energy Inc.
Sundance Electrical power Inc. is an impartial electricity exploration and production company positioned in Denver, Colorado. The Enterprise is concentrated on the acquisition and progress of big, repeatable oil and organic gasoline source plays in North The united states. Present functions are targeted in the Eagle Ford. A extensive overview of the Firm can be discovered on Sundance’s internet site at www.sundanceenergy.net.
Cautionary Statement About Ahead-Searching Statements
This push launch is made up of particular ahead-on the lookout statements in the meaning of the secure harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are determined by the use of the words and phrases “project,” “believe,” “estimate,” “expect,” “anticipate,” “intend,” “contemplate,” “foresee,” “would,” “could,” “plan,” and very similar expressions that are intended to identify forward-seeking statements, which are usually not historical in nature. These ahead-seeking statements are dependent on management’s existing expectations and beliefs regarding foreseeable future developments and their potential influence on Sundance. Even though management believes that these forward-seeking statements are sensible as and when produced, there can be no assurance that long run developments affecting Sundance will be those that are predicted. Sundance’s forward-on the lookout statements require major hazards and uncertainties (some of which are further than Sundance’s control) and assumptions that could induce real results to differ materially from Sundance’s historical working experience and current anticipations or projections. These involve, but are not restricted to, hazards or uncertainties affiliated with our ability to consummate the transactions associated with the Company’s existing individual bankruptcy courtroom continuing, our capability to attain in a timely method affirmation of a effective system of reorganization in the Company’s recent individual bankruptcy court docket proceeding and standard economic and enterprise conditions, which includes the ongoing impact of the COVID-19 pandemic. You are cautioned not to place undue reliance on forward-on the lookout statements contained in this press launch, which converse only as of the date of this push launch. Ahead-on the lookout statements also are affected by the possibility components explained in Sundance’s 10-K submitting for the fiscal yr finished December 31, 2019, as might be amended, and people set forth from time-to-time in other filings with the SEC. Sundance undertakes no obligation to publicly update or revise any ahead-wanting statements after the day they are built, whether or not as a outcome of new info, potential situations or or else.
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