Posted on 04/16/2016 12:45:05 PM PDT by Lorianne
Goodrich Petroleum filed for chapter 11 bankruptcy Friday with investment firms slated to pick up the pieces, as yet another company sought court protection amid the shakeout in the oil and gas industry. Houston-based Goodrich, an oil and gas producer which struggled to cut its debt as crude prices tumbled, has a deal in place that would erase $400 million in debt from its books through a swap with a group of investors that own bonds the company issued last year.
The Goodrich bondholders, who include Franklin Advisors, Penn Capital Management and Jefferies, have agreed to forgive $175 million in debt in exchange for ownership of the company. The deal is part of a larger bankruptcy-exit plan that would pay off or carry over $40 million of higher-ranking senior bank debt and wipe out $224 million in unsecured bonds.
Goodrich’s bankruptcy deal mirrors those proposed recently by other struggling oil producers as the energy slump transforms a U.S. industry once dominated by Texas oil men into one controlled by financial firms from across the nation.
Falling oil prices have roiled the industry since the summer of 2014. Since that time, about 60 North American oil and gas companies have filed for bankruptcy, involving nearly $20 billion in debt, according to the law firm Haynes & Boone. On Thursday, Houston’s Energy XXI filed for bankruptcy to complete a debt-for-equity swap with a group of bondholders that includes Oaktree Capital Management.
Denver-based Venoco filed for bankruptcy last month after striking a deal with Apollo Global Management and MAST Capital Management that will erase nearly $1 billion in debt. Energy & Exploration Partners, Magnum Hunter Resources and New Gulf Resourcesare among other energy companies that have brokered similar deals.
(Excerpt) Read more at wsj.com ...
OBAMAS fault
All part of Saudi Arabia’s plan to knock out US oil companies.
They may have borrowed too much money, thinking the good times would last longer than it did.
They shouldn’t have wasted money on their blimp.
I think you are referring to the Goodyear blimp.
“Hey, it’s the Goodrich Blimp!”
The bloodbath continues in oil, gas, & coal. The greenies and flat-earther, global warmer true believers must be deliriously happy.
Darn, they should be able make a lot of money on their Stealth Blimp Technology.
Hopefully it will save them from declaring Bankruptcy.
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