Getting a pre-packaged bankruptcy to go is about as fast as getting a Happy Meal at the McDonald’s drive-thru. Relatively speaking, of course. Bankruptcies usually take many months, often years, before a company emerges to fight another day. Not so with the pre-packaged variety. Seventy Seven Energy (SSE), the former Chesapeake Oilfield Operating company, filed a bankruptcy plan just two months ago (see Seventy Seven Energy Officially Files for Prepackaged Bankruptcy). Last month we reported SSE would soon exit bankruptcy, borrowing another $100 million (see Seventy Seven Energy Cleared to Exit Bankruptcy, Borrowing $100M!). Yesterday SSE reported they have emerged, waving the magic wand and turning $1.1 billion of debt into equity. SSE’s previous stockholders are now completely hosed, and the new stockholders (former debtholders) are holding their breath…
Getting a pre-packaged bankruptcy to go is about as fast as getting a Happy Meal at the McDonald’s drive-thru. Relatively speaking, of course. Bankruptcies usually take many months, often years, before a company emerges to fight another day. Not so with the pre-packaged variety. Seventy Seven Energy (SSE), the former Chesapeake Oilfield Operating company, filed a bankruptcy plan just two months ago (see 