Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Goodrich Petroleum Corp. Files for Chapter 11 Bankruptcy Protection

Author: Joel R. Glucksman

Date: June 15, 2016

Key Contacts

Back

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

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"
Understanding Chattel Paper: A Key Component in Secured Transactions post image

Understanding Chattel Paper: A Key Component in Secured Transactions

Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]

Author: Dan Brecher

Link to post with title - "Understanding Chattel Paper: A Key Component in Secured Transactions"
Crypto Compliance: A Comprehensive Guide post image

Crypto Compliance: A Comprehensive Guide

For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Compliance: A Comprehensive Guide"
Supreme Court and Title VII: Implications for Reverse Discrimination post image

Supreme Court and Title VII: Implications for Reverse Discrimination

Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]

Author: Matthew F. Mimnaugh

Link to post with title - "Supreme Court and Title VII: Implications for Reverse Discrimination"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!