SandRidge Energy Makes $50 million in Late Note Payments—-Future is still Uncertain

A month after deferring interest payments on notes due in 2023 because of its massive financial struggles, Oklahoma City-based SandRidge Energy announced Wednesday it had made nearly $50 million in payments due on two sets of notes.

The company originally announced on Feb. 16 that it had elected to defer the interest payments then due with respect to its 7.5 percent senior notes due 2023 and 7.5 percent senior convertible notes due 2023.

On Wednesday, the company issued a statement.

“On March 15, 2016, within the 30-day interest payment grace period provided for in the indentures governing the 2023 Notes, the Company made payments of approximately $21.7 million in satisfaction of its obligations under the 2023 Notes. Further, on March 16, 2016, the Company made approximately $28.4 million in interest payments then due with respect to its 7.5 percent senior notes due 2021.”

The announcement was also included in a filing with the Securities and Exchange Commission. The filing was made by Philip T. Warman, Senior Vice President and General Counsel to SandRidge Energy. But the payments do not mean the company is out of its financial challenges. The firm continues working with the law firm Kirland and Ellis and investment bank Houlihan Lokey on debt restructuring options. SandRidge is trying to avoid bankruptcy but one report by Reuters indicated Sandridge will file its annual report for 2015 late and it expects its accounting firm will indicate “substantial doubt” about the company’s ability to continue as a “going concern.”

SandRidge turned 10 this year after being formed by former Chesapeake Energy executive and co-founder Tom Ward, and once had nearly 1,900 employees. But that number has been sliced to slightly more than 700 at last word.