Seventy Seven Energy Inc. filed for Chapter 11 bankruptcy protection on Tuesday.
The Oklahoma City based oilfield services provider issued a press release, identifying the filing as a “prepackaged reorganization plan”.
The plan seeks to convert the company’s $1.1 billion in debt to equity. An important aspect of the plan is that is assures all trade creditors, suppliers and contractors will be paid as usual. It also assures commercial and operation contract remain intact.
Seventy Seven Energy Inc. formed in 2014 as an offshoot of Chesapeake Energy.