A week before it is scheduled to release its 2015 earnings report, financially-challenged SandRidge Energy, Inc. announced it chose to exercise a grace period and defer making nearly $22 million in interest payments that were due on Tuesday, Feb. 16, 2016. The $21.7 million in interest payments were due on the company’s outstanding $543.6 million principal amount of 7.5 percent senior notes due 2023 and on the outstanding $46.9 million principal amount of 7.5 percent senior convertible notes due 2023.
SandRidge indicated it had sufficient liquidity to make the interest payments but elected to use the 30-day grace period in connection with ongoing discussions with stakeholders.
“With a strong cash balance, we will continue operations without interruption, including paying employees, vendors and service providers,” said James Bennett, SandRidge President and CEO. “Today’s actions will preserve liquidity and flexibility as we continue to engage in constructive dialogue with our stakeholders.”
It was last month when Fitch Ratings in New York suggested SandRidge Energy and Chesapeake Energy were two Oklahoma City-based companies that were in trouble and could be headed toward Chapter 11 bankruptcy. But the bankruptcy talk about SandRidge has been around since December of 2014.
