Oklahoma City-based SandRidge Energy is in discussion with its creditors about reaching a debt restructuring deal ahead of a possible bankruptcy filing, according to a Reuters report citing unnamed sources familiar with the matter.
The company wants creditors to agree on how the debt would be reduced ahead of time in order to limit the length of time the company spends in bankruptcy, Reuters reported
The company spent billions during the previous decade to acquire land leases and build up its pipeline and disposal network in northern Oklahoma and southern Kansas. But SandRidge’s ran into trouble paying its debts when oil and gas prices plunged over the last two years.
In its last filing, Dec. 31, the company said it had $3.6 billion in long-term debt.