Oklahoma City-based White Star Petroleum LLC announced it is entering Chapter 11 bankruptcy protection.
The firm’s filing indicated it has liabilities at nearly $500 million while assets total between $500 million and $1 billion. The filing came after five creditors filed an involuntary Chapter 11 case without notice against White Star last week in Oklahoma City federal court.
White Star filed the bankruptcy case in Delaware this week and said it was reviewing the vendors’ petition. The company said it had obtained $28.5 million in special financing to pay legal fees and continue operations.
White House was created in 2016 by the late Aubrey McClendon’s American Energy Partners LP.
“White Star is continuing to operate its business during the strategic process, and with the DIP financing, has sufficient liquidity to timely pay all employees, vendors and suppliers for services and products provided during Chapter 11,” CEO Elliot Chambers stated in the announcement. ” “We recognize that the uncertainty of the past months has been difficult for many of our stakeholders but are pleased to have the support of our RBL lenders and an appropriate budget established for operations in Chapter 11.”