Parent company EnerVest Ltd. based in Houston is not filing for bankruptcy but its publicly traded upstream oil and gas business, EV Energy Partners is headed to bankruptcy court.
EV Energy Partners, a firm with operational offices in Elk City, Oklahoma and other states will file for bankruptcy to restructure and reduce its debt. A majority of lenders agreed to renegotiate the debt and restructure ownership in order for the company to avoid a financial default.
“We believe that this provides the best path forward for our company to reduce leverage, maintain access to liquidity and maximize value for all of our stakeholders. During the restructuring and upon emergence, we expect to have ample liquidity and do not anticipate the need for debtor-in-possession financing or other additional capital,” said EV Energy CEO Michael Mercer.
The parent firm is not filing for bankruptcy but EnerVest has seen a drop in value of its investment funds.
EV Energy Partners was founded in 2006 to help EnerVest acquire and manage oil and gas assets.