Tulsa-based Murphy Energy has become the latest energy firm to file Chapter 11 bankruptcy, listing more than $75 million debt including $57 million to lenders led by Bank of America.
The 23-year old oil and natural gas transporter with 210 employees has ten truck-to-pipeline crude oil terminals in Oklahoma and north Texas. The terminals buy crude oil from producers and transport it to customers. It has operations in Louisiana including the Port Hudson terminal and Port Allen which is under construction. The company has an affiliate and operates a fleet of more than 10 trucks and 200 crude or natural gas trailers.
Attorneys for Murphy Energy say the company was low on cash after finishing the Port Hudson terminal and it was necessary to file bankruptcy.
Chief Restructuring Officer Steven List said the company had a purchase offer late last year that would have paid the debts and pay out its owners but the unidentified buyer backed out at the last minute.
“Even in the weeks leading up to the bankruptcy, various parties continued to express interest in the company’s businesses at a level that would have produced meaningful, if not complete, recovery for creditors,” said List in court papers.
Bank of America entered the picture and said shortly before the filing that it would no longer extend borrowing deadlines on a loan. Court papers showed Murphy Energy also owes nearly $7 million to Mabrey Bank. The loan was made two years ago to allow Murphy to build the Port Hudson project.
