In recently Houston, TX bankruptcy news, Erin Energy announced this week that it will file for voluntary bankruptcy protection in an effort to restructure debt and restore its finances. Formally known as Camac Energy, the Houston-based oil and gas exploration and production company focused mainly on oil and gas development for African offshore plays, weighing heavily on offshore Nigerian oil and gas fields. The company stated that utilizing Chapter 11 bankruptcy will allow it to continue operations while taking advance of new oil and gas discoveries in Africa that it hopes to develop.
Houston Texas Chapter 11 Bankruptcy
Erin Energy filed a voluntary petition for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas on April 25th, 2018. In Texas bankruptcy filings, the company listed almost $248 million in assets with nearly $628 million in debts. As typical, the company will have up to four months to present a Chapter 11 plan of reorganization to the Bankruptcy Court for approval. During that period the company will seek debtor-in-possession financing in order to complete the Chapter 11 process.
Restructuring to Gain Financial Stability
In a press release by Erin Energy’s newly appointed CEO, Femi Ayoade announced that Erin Energy would “work diligently with all parties involved to complete the restructuring as quickly as possible so as to restructure all of the company’s debt obligations in order to achieve financial stability.” The company plans to acquire a seismic survey in Ghana later in the year in order to appraise well drilling and development planning.
Oil and Gas Bankruptcies in Texas
Oil and gas explorations and production companies have been hard hit with financial shortfalls over the past 36 months. The primary cause of the bankruptcy in Texas was the decrease in the cost of oil in favor of other energy methods such as liquefied natural gas and alternative energy. While the bankruptcies in Texas from E&Ps has slowed to a mere trickle compared to 2016, we continue to see private and public oil companies declaring Chapter 11 bankruptcy. Many such organizations have traded equity in their companies to lenders and left or reorganized under other entities. The primary takeaway is that while we have seen the worst of the oil and gas bankruptcies in the US, companies will continue to use the Bankruptcy Code in an effort to remain economically viable in an ever-changing economy.
Business Bankruptcy in Houston
Need to reorganize your business debt? Chapter 11 bankruptcy is not just reserved for huge corporations but is available to any company structured as an entity separate from its owners such as an LLC or Corporation. Baker and Associates help companies to reorganize their debts by renegotiating with their creditors while staying in control of business operations.