Davis Polk advised the term loan agent and DIP Agent in connection with the restructuring of Sheridan Holding Company II, LLC and its affiliated debtors (collectively, “Sheridan II”). On January 17, 2020, Sheridan II emerged from bankruptcy as Sunrise Oil & Gas, Inc. 

On September 15, 2019, Sheridan II and its affiliated debtors each filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. On November 12, 2019, Sheridan II’s plan of reorganization was confirmed by the Bankruptcy Court. Under the plan, the holders of Sheridan II’s DIP term loans exchanged their debt for priority debt in the reorganized company. The holders of Sheridan II’s prepetition term loans and prepetition revolving loans exchanged their debt for last out debt and equity in the reorganized company. Upon emergence, reorganized Sheridan II will have a $100 million priority exit term loan facility and a $75 million last out term loan facility. 

Reorganized Sheridan II operates an exploration and production business that invests in oil and gas properties. 

The Davis Polk restructuring team included partner Damian S. Schaible, counsel Jon Finelli, associates Stephen D. Piraino and Nate Sokol. The finance team included partner Jinsoo H. Kim and associates Amarilice C. Young and Michael Katz. The tax team included partner Lucy W. Farr, counsel Leslie J. Altus and associate Elina Khodorkovsky. The corporate team included partner Leonard Kreynin and associate Jason P. Thompson. All members of the Davis Polk team are based in the New York office.