Sabine Oil & Gas Corporation has received approval from the United States Bankruptcy Court for the Southern District of New York for a variety of First Day motions related to its voluntary Chapter 11 restructuring. Collectively, the First Day orders issued by the Court on either an interim or final basis will help Sabine continue operating its business in the ordinary course as it seeks to restructure its balance sheet.
'The Court's approval of the First Day motions represents an important, positive step forward in our efforts to strengthen Sabine's financial condition,' said David Sambrooks, President and Chief Executive Officer of Sabine. 'With these approvals, Sabine will continue operating and funding its business operations in the ordinary course. Our objective moving forward is to strengthen our Company's capital structure and address our balance sheet, allowing us to operate more efficiently in the future, and ultimately, make us a stronger business partner going forward.'
The Court approved motions that give Sabine authority to, among other things, pay employee wages and benefits without interruption throughout the financial restructuring process, access its cash and cash collateral and continue its current cash management system, continue making royalty payments, and continue paying claims to certain of the Company's oil and gas vendors. As of the filing date, the Company had a cash balance of approximately $253 million, which provides substantial liquidity to fund its current operations.