A recent Chapter 11 bankruptcy filing by a Pennsylvania energy company could be a gain for Houston. Penn Virginia Corp, a firm that focuses on the Eagle Ford Shale in south Texas filed bankruptcy last week and listed $1.43 billion in debts and total assets of $517.7 million.
It reached a restructuring support agreement with a majority of debt holders and got a commitment for up to $128 in exit financing. The Company indicated it expects to emerge from bankruptcy by the end of the summer and possibly considering moving headquarters to Houston.
The chairman and interim CEO of Penn Virginia, Edward Cloues II, told the Victoria Advocate that the company’s headquarters in Radnor, Pennsylvania will likely be closed and relocated to Texas. The company listed 112 employees as of the end of 2015.
Cloues also indicated the bankruptcy will “have basically no impact on the operations” of the company.
“Like many other exploration and production companies, Penn Virginia has been significantly affected by the recent and continued dramatic decline in oil and natural gas prices,” he said. “We believe using the Chapter 11 process is the most efficient way to achieve our financial objectives and deleverage the company’s balance sheet.”
