Another oil and gas producer has gone to bankruptcy court, trying to resolve its billions in debt. Houston, Texas based Energy XXI filed for Chapter 11 restructuring in federal bankruptcy court this week in Houston, trying to eliminate $2.8 billion in debt.
The move comes as oil prices are in the $40 a barrel range, at least $20 down from what the company needed to break even.
Energy XXI announced last month that it was delaying paying the interest on the debt of one of its subsidiaries. The firm’s executives maintained they had sufficient liquidity including $180 million in cash on hand as of March 31and money from ongoing operations to continue operations and keep the business running through any financial restructuring.
The case is in the U.S. Bankruptcy Court for the Southern District of Texas and is case number 16-31928.
The largest energy producer to go bankrupt in the past several months has been Samson Resources Corp. of Tulsa. It filed Chapter 11 in Delaware in September and listed $4.3 billion in debt.
