As banks complete their Spring re-determination, the process where banks calibrate their credit levels for producers, the squeeze of 10-30% reductions are being felt as a growing number of producers have delayed their 10k reporting due to pending credit agreement defaults which need to be resolved in order to continue as a going concern. This week the following companies have announced, or indicated, they are pursuing some form of restructuring:

Sandridge Energy, an E&P producer with operating assets in the Mid-Continent, filed for Chapter 11 where the company plans to swap $3.7B of debt for the equity of the restructured company.

Midstream Agreements:  Below are the midstream providers with outstanding receivables as disclosed in the Chapter 11 filing.  

Breitburn Energy Partners, an E&P Master Limited Partnership with diversified assets across the Permian and Mid-Continent, filed for Chapter 11 relief as they work with creditors to restructure their $2.8B debt.  Breitburn joins Linn Energy as the second MLP to file for Chapter 11.  Breitburn Energy Partners are encouraged to sell their units prior to a debt restructuring, which could result in CODI tax liability on the 2016 K-1.

Midstream Agreements:  Below are the midstream providers with outstanding receivables as disclosed in the Chapter 11 filing.