How Close is SandRidge Energy to Bankruptcy Court?

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Officials at Oklahoma City-based SandRidge Energy aren’t talking publicly about it but reports are growing that the firm might be on the verge of filing Chapter 11 bankruptcy.

Reuters and the investor website known as Seeking Alpha indicate the company could file as soon as Friday but no later than June 1.

SandRidge confirmed weeks ago it was in debt restructuring talks with financial experts hired to assist the company with its growing debt. The company listed $3.6 billion in debt at the end of 2015 and has an interest payment due June 1.

Founded 10 years ago by former Chief Executive Tom Ward, the company is apparently trying to convince its creditors to go along with the Chapter 11 move.

SandRidge did not respond to a request from OK Energy Today.

Seeking Alpha, in a report on Thursday said of the June 1 filing date, “We believe this latter date to be a near certainty,. The filing, it is our belief, is entirely contingent no the speed at which “final mile: talks with one very large, very particular party progress.”

The website’s Dallas Salazar added, “Two days ago we heard rumors from multiple, credible, very “plugged in” sources that SandRidge Energy was in “final mile” talks with a special creditor/debtholder. We were told this creditor/debtholder was Franklin; yes, that Franklin.”

Salazar explained that Franklin owns hundreds of millions of dollars of SandRidge Energy’s “now nearly entirely ‘out of the money’ cap structure, including a portion of its Second Lien.