On October 31. 2019 Gastar Exploration filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court of the Southern District of Houston. Gastar entered into a pre-packaged restructuring support agreement with Term Lenders, Second Lien Note-holders, and other holders Existing Common Interests.
In a statement released by Gastar Exploration Inc. on January 22, 2019, the company announced they have met all the conditions of the Chapter 11 bankruptcy case and have emerged as a private company.
Chief Financial Officer Michael A. Gerlich said “We are pleased to be emerging from Chapter 11 and moving forward with a solid financial foundation to continue to build our business. I would like to thank our employees, management team, and financial stakeholders whose participation in the process was central to a successful outcome.”
Paid Employee’s Wages
Through the reorganization plan, Gastar was able to eliminate more than $350 million of debt. According to the company website, they continued to pay employee wages and provide healthcare and other benefits while in the bankruptcy process.
The company will no longer be operating as a Delaware corporation and will move forward as a Delaware limited liability company known as Gastar Exploration LLC.
When a company legally registers in the state of Delaware but conducts business in any state it is known as a Delaware corporation. Delaware adapted its laws to attract businesses from other states. Incorporation in Delaware has many benefits, such as if the company does not operate in Delaware, the state’s corporate income tax may not apply, instead the company pays an annual flat fee or franchise tax.
Gastar Exploration is an independent energy company, exploring and developing the production of oil, condensate, natural gas and natural gas liquids in the United States. You can find more information about the restructuring plan and bankruptcy at Gastar website.
If its getting harder to pay your bills and worry you may lose your business or your home, contact a Houston bankruptcy attorney to discuss what options you may have.