In last trading session, the stock price of SandRidge Energy Inc. (OTCMKTS:SDOC) surged 25% to close the day at $0.0660. The gains came at a share volume of 28.39 million compared to average share volume of 10.29 million.
As per the market expectations, SandRidge Energy could go for Chapter 11 bankruptcy by no later than this month. A couple of days ago, there were rumors from “plugged in” sources that the company was in “final mile” discussions with a special debtholder/creditor. As per broad mock-“re-valuation” study, a process in which company, its legal advisors, and its financial advisors try make a case to benches for a total firm valuation that would validate insolvency.
This procedure would be done during the process of implementing through a Chapter 11 bankruptcy filing. SandRidge Energy debt vehicles appear to be largely in consent that just the Second Lien vehicle trades more than ten cents on the dollar. This indicates that even the Second Lien doesn’t expect full recovery.
SandRidge Energy’s stock is now trading on OTC marketplace platform under symbol “SDOC.” It has noted incredible total volume coming into it on continued interest/debt service by the E&P and continuous misrepresented bull theses. Many of these bull theses can be disproved and rebutted by assessments of covenant arrangement of each tranche of debt.
As per Seeking Alpha, they have been tracking and promoting the SandRidge Energy bankruptcy theory dating back to 2015. They have been following very credible company prepack rumors dating back to Thanksgiving 2015. Also, the group believe every reportable occurrence that company has been forced to 8-K form as material settling matters with Occidental Petroleum pertaining to millions in owed back-payments for services and settling a forward looking deal with the firm, has been in an attempt to move past obstacles towards an eventual prepack.