Bankruptcy continued to plague the North American energy industry throughout 2016 with more than $70 billion in debt filed in the upstream sector alone.In total, there have been 232 bankruptcy filings in the U.S. and Canada that represent $96.2 billion in debt since the beginning of 2015, according to a year-end bankruptcy report from Haynes and Boone LLP. That includes exploration and production, oil field services and midstream sectors.
Source: Haynes and Boone: Texas represents bulk of energy bankruptcies since 2015 – Houston Business Journal
Another Houston company that serves the oil industry has filed for bankruptcy — this time it’s Pioneer Carriers LLC, a trucking service that hauls crude oil in the Eagle Ford and Permian Basin.Pioneer is entering Chapter 11 bankruptcy with between $1 million and $10 million in assets and the same range in debts.
Source: Pioneer Carriers LLC files for Chapter 11 – Houston Business Journal
Houston-based Bennu Oil and Gas LLC has filed for Chapter 7 bankruptcy in the Southern District of Texas in Houston.Bennu is an oil and gas offshore production company, according to archives of its now-defunct website. The company is bringing $32.5 million in assets and $724.1 million in debts into bankruptcy, according to court filings.
Source: Bennu Oil and Gas LLC files for Chapter 7 bankruptcy – Houston Business Journal
LOS ANGELES (AP) — The bankruptcy of the Hanjin shipping line has thrown ports and retailers around the world into confusion, with giant container ships marooned and merchants worrying whether tons of goods will reach their shelves.The South Korean giant filed for bankruptcy protection on Wednesday and stopped accepting new cargo. With its assets being frozen, ships from China to Canada found themselves refused permission to offload or take aboard containers because there were no guarantees that tugboat pilots or stevedores would be paid. Hanjin called us and said: ‘We’re going bankrupt and we can’t pay any bills — so don’t bother asking,’ ” said J. Kip Louttit, executive director of the Marine Exchange of Southern California, which provides traffic control for the ports of Los Angeles and Long Beach, the nation’s busiest port complex.
Source: Hanjin Bankruptcy Causes Global Shipping Chaos, Retail Fears | World News | US News
Houston-based Key Energy Services Inc. and some subsidiaries expect to file a prepackaged Chapter 11 plan of reorganization by Nov. 8.The restructuring is expected to reduce Key’s debt by $725 million to about $250 million. The onshore, rig-based well-servicing contractor plans to begin Chapter 11 proceedings in Delaware once senior note holders and lenders officially vote on the plan and an $85 million rights offering expires.
Source: Key Energy Services plans to restructure under Chapter 11 – Houston Business Journal
Halcon Resources Corp., the oil and gas explorer founded by wildcatter Floyd Wilson, filed for bankruptcy as part of a restructuring agreement reached with key lenders in May.
The agreement would eliminate $1.8 billion in debt and $222 million in preferred stock, the Houston-based company said at the time. On June 10, Halcon said a majority of holders had accepted the restructuring, which will be implemented through a Chapter 11 bankruptcy.
The filing Wednesday in Delaware federal bankruptcy court listed $3.12 billion in debt and $2.85 billion in assets.
C&J Energy Services Ltd. (NYSE: CJES) announced on June 1 that it has reached a month-long forbearance agreement to avoid default while it continues discussions with lenders regarding the company’s debt and capital structure.Lenders agreed not to exercise default remedies or accelerate any indebtedness through June 30.
Source: C&J Energy reaches forbearance agreement, continues discussions with lenders – Houston Business Journal
Linn Energy’s announcement that it has filed for Chapter 11 was significant in that its $8.28 billion in debt is the largest any upstream energy company has filed for bankruptcy in North America in 2016. However, it’s one of dozens so far this year and one of dozens more to come.Seventy-five companies have filed for bankruptcy since the downturn began. The expectation is that the number will climb to 150 filings before it’s over, according to Buddy Clark, a partner in the Houston office of Haynes and Boone LLP.
Source: Haynes and Boone predicts dozens more bankruptcies like Linn Energy – Houston Business Journal
Breitburn Energy Partners LP filed for chapter 11 bankruptcy protection Sunday, taken down by plunging oil prices.Business operations will continue while Breitburn negotiates a restructuring of its balance sheet, continuing talks with creditors that began a month ago, Chief Executive Hal Washburn said in a release.The decision to file for bankruptcy was made when it became “abundantly clear that those negotiations could not be concluded and an appropriate restructuring consummated on an out-of-court basis” in time to avert a cascade of defaults that would have squeezed Breitburn’s liquidity, James Jackson, chief financial officer of a Breitburn subsidiary, wrote in a court filing.Breitburn’s hedging assets, contracts that cushion the company’s cash holdings against price volatility, will be a central factor in restructuring talks, according to the court papers. The company estimates proceeds of its hedging agreements could be up to $500 million. Outside bankruptcy, hedges are “a significant source of liquidity.”In bankruptcy, however, a dispute is brewing with Breitburn’s senior lenders, many of whom are also counterparties to the hedge agreements. The company hopes negotiations will avoid litigation over the question of whether it is entitled to use the hedging proceeds, according to court papers. Meanwhile, Breitburn has come to terms with senior lenders on financing arrangements that will support normal operations in bankruptcy.The Los Angeles company joined a crowd of oil-and-gas firms in bankruptcy, including Linn Energy LLC, which also attracted investors with partnership tax benefits. In April, Breitburn suspended distributions to preferred investors and skipped bond interest payments.Distributions to common shareholders were cut, then suspended last year, as Breitburn took steps to get its finances in line with plunging oil prices.Citing the “prolonged decline in commodity prices,” Mr. Washburn said Breitburn’s existing debt is unsustainable. In papers filed in the U.S. Bankruptcy Court in New York, Breitburn reported assets of $4.7 billion and debts of $3.4 billion as of March 31.
Source: Breitburn Energy Partners Files for Chapter 11 Bankruptcy – WSJ
SandRidge Energy has joined scores of energy companies seeking refuge from the oil crash in bankruptcy court, becoming one of the largest U.S. shale drillers to succumb to the downturn.The Oklahoma City oil company is seeking Chapter 11 bankruptcy protection with a plan in place to turn $3.7 billion in debt to stock, it said Monday. It has about $4 billion in debt and $7 billion in assets, according to court papers.The firm, which has about 800 employees, plans to put up its oil and gas reserves as collateral for a $425 million loan and acquire another $300 million in debt that will at some point convert to equity. It said it would have enough capital to keep running its oil and gas operations, which are mainly in Oklahoma and Texas.“The new capital structure will allow the company to concentrate on oil and gas exploration and development in our active Oklahoma and Colorado project areas,” Sandridge CEO James Bennett said in a written statement.SandRidge’s filing comes as U.S. energy bankruptcies are accelerating, and it brings the number of North American oil company bankruptcies since the downturn began to 74, according to Dallas law firm Haynes & Boone.
Source: SandRidge Energy files for Chapter 11 bankruptcy | Fuel Fix