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  • April 2018 (Revised April 2019)
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Sabine Oil & Gas Corporation

By: Stuart C. Gilson, Kristin Mugford and Sarah L. Abbott
  • Format:Print
  • | Language:English
  • | Pages:36
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Abstract

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.)
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About The Authors

Stuart C. Gilson

Finance
→More Publications

Kristin W. Mugford

Finance
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Related Work

    • April 2018
    • Faculty Research

    Sabine Oil & Gas Corporation

    By: Kristin Mugford
    • April 2018 (Revised April 2019)
    • Faculty Research

    Sabine Oil & Gas Corporation

    By: Stuart C. Gilson, Kristin Mugford and Sarah L. Abbott
Related Work
  • Sabine Oil & Gas Corporation By: Kristin Mugford
  • Sabine Oil & Gas Corporation By: Stuart C. Gilson, Kristin Mugford and Sarah L. Abbott
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