Goodrich Petroleum Corp. Files for Chapter 11 Bankruptcy Protection

Goodrich Petroleum Corp. files Chapter 11

Goodrich Petroleum Corp., a U.S. oil and gas giant, recently announced that it had filed for Chapter 11 bankruptcy protection. According to The Wall Street Journal, the company sought bankruptcy protection in order to erase more than $400 million in debt. Goodrich now becomes just the latest one of more than 60 energy companies that have collapsed following the fall of oil prices that began last year.

Goodrich Petroleum Corp. spirals into debt

In its bankruptcy petition, Goodrich cited the record drop, and subsequent slow rebound, of oil and gas prices since the third quarter of 2014. As a result, the company’s market value fell to $3.9 million this year from $2.8 billion eight years ago.

In fact, in 2015 alone, Goodrich reported a $410 million net loss, which continued its downward trend from 2014 when it experienced a $383 million net loss. Compounding the company’s problems was that it only averaged 7,306 barrels of oil produced per day last year, which represented a 36 percent drop from 2014. All told, the company’s revenues fell by 62 percent down to only $79 million in 2015.

With its financial struggles, Goodrich’s share price plummeted to the point that it was delisted from the New York Stock Exchange earlier this year.

Goodrich Petroleum Corp‘s reorganization plan

Goodrich stated in its bankruptcy documents that it intends to maintain operations throughout the reorganization period. In order to accomplish this, the company plans to obtain debtor-in-possession financing to assist in emerging from bankruptcy as a viable business.

As part of its bankruptcy agreement with debtholders, it will cut a majority of its remaining liabilities so that it will only hold $40 million in first lien debt. Currently, the company is also negotiating a debt-for-equity swap with its creditors to refinance its balance sheet.

Are you a creditor in a bankruptcy?  Have you been sued by a bankrupt?  If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.

For more posts dealing with oil companies filing for Bankruptcy, check out:

• Venoco files for Chapter 11 Bankruptcy Protection
• Emerald Oil Inc Files for Chapter 11 Bankruptcy Protection
• Paragon Offshore Files for Chapter 11 Bankruptcy Protection