Tag Archives: Oil and Gas Bankruptcy

Bennu Oil and Gas LLC files for Chapter 7 bankruptcy – HBJ

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

Texas business bankruptcies may double: ‘The carnage is going to be terrible’

Texas business bankruptcies jumped significantly in 2015, but lawyers and financial experts say last year’s increase is nothing compared to the tidal wave of corporate failures headed this way.Bankruptcy courts in South and West Texas saw the number of companies filing for protection under Chapter 11 of the U.S. Bankruptcy Code increase 37 percent and 65 percent, respectively, last year, according to new data provided by Androvett Legal Media.Financial and legal advisers who specialize in corporate restructuring say they have been hired during the past few weeks by scores of additional Texas businesses — most of them in the oil and gas sector — to explore their bankruptcy options.Eighteen prominent bankruptcy experts interviewed by The Texas Lawbook say that they expect the number of oil and gas companies in Texas that file for bankruptcy in 2016 to double, and that those bankruptcies will cause a domino effect that will spread to other business sectors.“The carnage is going to be terrible and widespread unless oil prices rebound quickly,” said William Snyder, head of restructuring at Deloitte in Dallas. “Bankruptcy filings are going to double.”Snyder, who is viewed as one of the nation’s leading bankruptcy experts, said Deloitte has an additional 75 oil and gas companies on the accounting firm’s danger list — companies, he said, that are “running out of cash.”“Everyone is panicked,” he said. “We are going to see some gigantic companies filing that no one even suspects.”Forty-eight oil and gas service companies and exploration and production companies filed for bankruptcy during the last 13 months — nearly all of them upstream exploration and production companies or oil and gas service companies, according to a report issued by the law firm Haynes and Boone.To make matters worse, there’s growing concern that new legal tactics being argued by lawyers for bankrupted exploration and production corporations will cause the financial distress to spread more quickly to midstream companies, which had previously been viewed as less vulnerable to the economic downturn.The distress will “expand beyond oil and gas companies to other business sectors” in Texas, including manufacturing, industrial, commercial real estate and even retail, said Eli Columbus, a partner in the bankruptcy section at Winstead in Dallas.As a result, most of the large Texas law firms are beefing up their bankruptcy practices.

Source: Texas business bankruptcies may double: ‘The carnage is going to be terrible’ | Dallas Morning News

Signal Gets Interim OK On $90M DIP Amid Auction Planning

A Delaware bankruptcy judge gave Signal International LLC the interim nod Tuesday to tap a portion of it’s $90 million debtor-in-possession financing as the company, plagued by labor trafficking claims, hopes to run a roughly 100-day sale process under Chapter 11 protection.

During a hearing in Wilmington, U.S. Bankruptcy Judge Mary F. Walrath agreed to let the oil and gas service and shipbuilding company have immediate access to $2.5 million of the DIP package being extended by a group of first-lien lenders

 

Sabine sixth U.S. producer to seek bankruptcy protection this year – Fuel Fix

Sabine Oil & Gas Corp. is seeking Chapter 11 bankruptcy protection, making it the sixth and the largest U.S. oil producer yet to file for bankruptcy because of cheap oil prices.

Court papers filed in New York on Wednesday show the Houston company had $2.48 billion in assets and total liabilities of $2.91 billion at the end of May, the second largest U.S. bankruptcy this year, according to data compiled by Bloomberg. It’s a mid-sized oil and gas company, and had $550 million more in debt than the second-biggest producer to file for bankruptcy this year, Fort Worth-based Quicksilver Resources.

Sabine drills for oil and gas in the Haynesville Shale in east Texas and Louisiana, and the Eagle Ford Shale and the Granite Wash in Texas. It had 165 employees and about thousands of drilling sites across the state.

In a statement, Sabine’s finance chief blamed its high debt and low oil and natural gas prices and volatility across energy markets for the company’s situation, saying it could have otherwise fixed its balance sheet by selling assets – if not for cheap oil and gas devaluing its properties.

via Sabine sixth U.S. producer to seek bankruptcy protection this year – Fuel Fix.