Falling oil prices have led U.S. oil and gas producer Samson Resources Corporation to file for Chapter 11 bankruptcy. The company has told the press that Chapter 11 bankruptcy might be the best option for restructuring its multibillion-dollar debt load. Samson Resources Corporation posted a loss of $950 million late last year, and currently has about $4 billion in debt.
Due to the falling price of oil and weak profits, Sampson Resources Corporation’s lenders, which include J.P Morgan Chase Co and KKR Co., have reduced how much it could borrow. With losses approaching one billion and another four billion owed to lenders, filing for Chapter 11 bankruptcy could allow the company to eliminate some of its debts and refinance others.
Can Smaller Businesses Get the Same Benefits From Chapter 11 Bankruptcy?
What can smaller businesses learn from the bankruptcy of a major oil company? No matter how large or small your company is, filing for Chapter 11 bankruptcy can give business owners more options than they might have had before. Chapter 11 bankruptcies can stop existing litigation, keep business owners in control of a company, reduce and restructure debts and protect employees from losing jobs.
As seen in the example of Samson Resources Corporation, with a debt of $4 billion, there is no maximum or minimum ceiling when filing for Chapter 11 bankruptcy.
The Sader Law Firm – Kansas City Bankruptcy Attorneys