Bankruptcy in the City of Detroit

Stuart C. Gilson; Kristin  Mugford

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Supplement | HBS Case Collection | December 2015

Bankruptcy in the City of Detroit

by Stuart C. Gilson and Kristin Mugford

Language: English

Format: Electronic

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Citation:

Gilson, Stuart C., and Kristin Mugford. "Bankruptcy in the City of Detroit." Harvard Business School Spreadsheet Supplement 216-703, December 2015.

About the Authors

Stuart C. Gilson

Steven R. Fenster Professor of Business Administration

Finance

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Kristin Williams Mugford

Senior Lecturer of Business Administration

Finance

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Case | HBS Case Collection | April 2018 (Revised April 2019)

Sabine Oil & Gas Corporation

Stuart C. Gilson, Kristin Mugford, Sarah L. Abbott, Stuart C. Gilson, Kristin Mugford and Sarah L. Abbott

In 2016, a trial began to determine the future of Sabine Oil & Gas Corporation’s $3 billion chapter 11 reorganization plan. The plan called for first- and second-lien-secured creditors to receive new claims representing approximately 98% of the reorganized company’s enterprise value, leaving unsecured creditors, owed $1.4 billion, to recover less than two cents on the dollar. The plan had the support of the secured creditors, but unsecured creditors were strongly opposed. At the heart of the unsecured creditors’ objections to the plan was a dramatically different view on valuation. How much were Sabine's oil and gas reserves worth today? How much were they worth at the time Sabine filed for chapter 11? And, based on these valuations, what was a fair recovery for Sabine's creditors?

Keywords: corporate reorganization; chapter 11; oil ＆ gas; bankruptcy; bankruptcy reorganization; Insolvency and Bankruptcy; Energy; Restructuring; Valuation; United States;

Citation:
Gilson, Stuart C., Kristin Mugford, and Sarah L. Abbott. "Sabine Oil & Gas Corporation." Harvard Business School Case 218-004, April 2018. (Revised April 2019.) View Details

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Case | HBS Case Collection | April 2018 (Revised April 2019)

Sabine Oil & Gas Corporation

Stuart C. Gilson, Kristin Mugford, Sarah L. Abbott, Stuart C. Gilson, Kristin Mugford and Sarah L. Abbott

In 2016, a trial began to determine the future of Sabine Oil & Gas Corporation’s $3 billion chapter 11 reorganization plan. The plan called for first- and second-lien-secured creditors to receive new claims representing approximately 98% of the reorganized company’s enterprise value, leaving unsecured creditors, owed $1.4 billion, to recover less than two cents on the dollar. The plan had the support of the secured creditors, but unsecured creditors were strongly opposed. At the heart of the unsecured creditors’ objections to the plan was a dramatically different view on valuation. How much were Sabine's oil and gas reserves worth today? How much were they worth at the time Sabine filed for chapter 11? And, based on these valuations, what was a fair recovery for Sabine's creditors?

Keywords: corporate reorganization; chapter 11; oil ＆ gas; bankruptcy; bankruptcy reorganization; Insolvency and Bankruptcy; Energy; Restructuring; Valuation; United States;

Citation:
Gilson, Stuart C., Kristin Mugford, and Sarah L. Abbott. "Sabine Oil & Gas Corporation." Harvard Business School Case 218-004, April 2018. (Revised April 2019.) View Details

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Case | HBS Case Collection | April 2019

Sears: The Demise of an American Icon

Kristin Mugford and Sarah L. Abbott

Citation:
Mugford, Kristin, and Sarah L. Abbott. "Sears: The Demise of an American Icon." Harvard Business School Case 219-106, April 2019. View Details

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Bankruptcy in the City of Detroit

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