48 North American oil and gas producers filed for bankruptcy since 2015

Financial bubble
Source: DollarPhotoClub

Haynes and Boone, LLP bankruptcy and energy finance lawyers, issued on Wednesday an update of its Oil Patch Bankruptcy Monitor, which has identified 48 North American oil and gas producers that have filed for bankruptcy since the beginning of 2015. These bankruptcies, including Chapter 7, Chapter 11, and Canadian cases, involve over $17.3 billion in cumulative secured and unsecured debt.

As of mid-February, six producers have filed bankruptcy so far in 2016. All indications suggest many more producer bankruptcy filings will occur throughout the year.

“We are gratified that the information in our reports is helpful to the industry and press,” says Buddy Clark, Houston partner who heads the firm’s energy practice. “As the oil price continues in a protracted downturn, it is important that everyone understand exactly what is happening and why. The Monitor and our other research tools help capture the rolling impact as it moves through the industry.”

Added Ian Peck, chair of the Haynes and Boone Bankruptcy and Restructuring Section: “This year will bring more distress for many more energy-related companies. Previously, we were tracking distress in real time to assess the full impact of low oil prices on our clients. Based on positive client feedback, we decided to make our data available to others in the industry. It is great to see the attention our reports have garnered in the marketplace.”

With the slump in commodity prices persisting, the lawyers of Haynes and Boone’s Energy and Bankruptcy practice groups are continuing to follow industry developments. The firm has played a key role in a number of high-profile E&P and oilfield service matters, including asset sales, refinancings, debt restructurings and Chapter 11 cases, representing debtors, creditors, energy lenders and private equity investors.

This month the firm also updated its Oilfield Services Bankruptcy Tracker, which profiles insolvency activity among middle-market E&P service providers. And earlier this year, the Haynes and Boone team issued its spring 2016 Borrowing Base Redetermination Survey, which queried oil and gas lenders, borrowers and others in the industry about expectations for borrowing base redeterminations in light of oil price uncertainty.

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