SandRidge Bankruptcy Hits a Bump in the Road

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Ever since filing for Chapter 11 bankruptcy in May, leaders of Oklahoma City-based SandRidge Energy have been busy with one filing after another in the southern District of Bankruptcy court in Texas. It’s clear the bankruptcy is not going as smoothly as some on either side would prefer.

Recently, the company’s official committee of unsecured creditors filed an objection to the debtors’ emergency motion for interim and final orders authorizing post-petition use of cash collateral, granting adequate protection to pre-petition lenders and scheduling a final hearing.

In its filing the committee claimed the “Adequate Protection package is overreaching,” and “improperly seeks to impose liens and superpriority claims on avoidance action proceeds.” The filing also claimed that the Cash Collateral order contains “inappropriate waivers that will, under the facts and circumstances of these cases significantly harm unsecured creditors.”

Court documents indicate that a meeting of the creditors is scheduled for July 12 at 10 a.m. in Houston, Texas.

The bankruptcy filing included not just SandRidge Energy, Inc. but 23 of its subsidiaries or LLCs. They include: 4th Street Properties, LLC’ Black Bayou Exploration, LLC; Braniff Restaurant Holdings, LLC’; CEBA Gathering, LLC; CEBA Midstream GP,LLC; CEBA Midstream, LP; Cholla Pipeline, LP; Cornhusker Energy, LLC; FAE Holdings 389322R, LLC; Integra Energy, LLC; Lariat Services, LLC; MidContinent Resources, LLC; Mistmada Oil Company, LLC; Pinon Gathering Company, LLC; Sabino Exploration, LLC; Sagebrush Pipeline, LLC; SandRidge CO2, LLC; SandRidge Exploration and Production, LLC; SandRidge Holdings, Inc.; SandRidge Midstream, Inc.; SandRidge Operating Company; SandRidge Realty, LLC; sierra Madera CO2 Pipeline, LLC; and WTO Gas Gathering Company, LLC.