SandRidge Energy, Inc.
SandRidge Energy is located in Oklahoma City, Oklahoma. They specialize in oil and natural gas exploration in the US, mid-continent.
SandRidge shareholders took a major hit in 2016 when the company filed for chapter 11 bankruptcy protection in May. The reason for bankruptcy was stated as high debt and low commodity prices. As part of the reorganization efforts, they eliminated debt of $3.7 billion. Part of the debt elimination was to cancel current stock issues.
This caused a loss for shareholders as the company reemerged in October, under the same name, and same ticker symbol (SD). Particularly affected by this loss were SandRidge employees, who would have had a major part of their 401k invested in SandRidge stock.
So, through the reorganization, the company benefits. The lienholders did not do too badly, and received stock in the new company. The new shareholders benefit. The original shareholders of SandRidge stock lost everything that they had invested in the company. The irony is that the employees now get to work to support the new shareholders, while they lost all their stock in the company.