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Related: About this forumQuicksilver Resources files for bankruptcy
Quicksilver Resources, the Fort Worth-based oil and natural gas producer, filed for bankruptcy Tuesday, as low oil prices continue to send shockwaves across the industry.
The announcement came as U.S. crude prices closed at less than $44 a barrel Tuesday, a more than 60 percent decline since the summer. And as U.S. oil production continues to grow, filling up domestic storage facilities, many are nervous a further price shock is coming.
Signs of trouble at Quicksilver have been building for months. As oil prices plummeted, some of Quicksilvers high yield bonds lost 30 percent of their value between September and December. In February the company announced it was laying off 10 percent of its workforce.
As the companys cashflow issues worsened, executives began looking to address debts of $2.4 billion, according to Quicksilvers Chapter 11 filing Tuesday.
Read more: http://bizbeatblog.dallasnews.com/2015/03/quicksilver-resources-files-for-bankruptcy.html/
Cross-posted in the Environment & Energy Group.
yeoman6987
(14,449 posts)I like their swim trunks. I have 7 pair and might get one more this Spring but would have gotten many more if they were closing shop. Thank Goodness it isn't them.
misterhighwasted
(9,148 posts)There are some pissed off investors & creditors. 2.4 billion. Wow
TexasTowelie
(112,237 posts)Only 1.21 billion in assets and between 25,001-50,000 creditors. The three largest creditors are Wilmington Trust National Association ($362M), Delaware Trust Company ($333M) and U.S. Bank National Association ($313M). The unsecured creditors will be taking a substantial haircut.
misterhighwasted
(9,148 posts)I don't think Quicksilver will be the only one to fall. A few of the same are coming down the line in due time.
Its a volatile high risk commodity & this case lays out the numbers at stake.
Pretty fascinating story.
Appreciate your Op
TexasTowelie
(112,237 posts)This was the first company in Fort Worth to seek Chapter 11.
There were three companies in Houston that already filed for Chapter 11: Dune Energy, BPZ Resources and Cal Dive International.
Dune Energy: $230M assets, $144 liabilities, 1,000 to 5,000 creditors, auctioning all assets
BPZ Resources: $229 liabilities, restructuring to stay in business, subsidiaries still continue normal operations
Cal Dive International: selling non-core assets and intends to reorganize or sell its core subsea contracting business. Foreign subsidiaries have not sought bankruptcy protection. Failed to make $2.2 million interest payment due on Jan. 15, 2015.
One other company in Austin also filed Chapter 11.
WBH Energy: >$10M assets, >$30M liabilities, Minnesota debt investor Castlelake declined to provide WBH Energy more funds under a credit facility.