Quicksilver 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 Quicksilver’s 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 company’s cashflow issues worsened, executives began looking to address debts of $2.4 billion, according to Quicksilver’s Chapter 11 filing Tuesday.
Read more: http://bizbeatblog.dallasnews.com/2015/03/quicksilver-resources-files-for-bankruptcy.html/
Cross-posted in the Texas Group.