With liabilities of more than $700 million, Texas based Bennu Oil and Gas LLC has filed Chapter 7 bankruptcy and has shut down operations. The company said it has about $32.5 million in assets but most of its liabilities, about $495 million is owed to creditors whose claims are secured by property.
Bennu Oil and Gas is a 3-year old energy company that focused on offshore production in the Gulf of Mexico and was originally founded to buy ATP Oil and Gas Corp.’s drilling assets after the Deepwater Horizon oil spill.
The filing for bankruptcy was made in U.S. Bankruptcy Court in Houston and since it is Chapter 7, it means a trustee will be named to sell off the company’s remaining assets.
“Everything has been shut down in an environmentally responsible way,” maintained Richard Levy, who was Bennu Oil and Gas’s lead restructuring attorney. “Senior management did everything they could. I wish it had a happier ending.”
The Dallas-based Beal Bank, founded by Texas billionaire Andrew Beal claims it is owed more than $180 million as a result of a $350 million loan made to Bennu Titan in 2010.