Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Ultra Petroleum files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: June 24, 2016
Key Contacts
Back
Ultra Petroleum files Chapter 11
Recently, Ultra Petroleum, the largest natural gas company in Wyoming and one of the biggest firms in the nation, announced that it had filed for Chapter 11 bankruptcy protection. According The Wall Street Journal, the company cited several months of financial decline for its decision.
Ultra Petroleum falls into insolvency
In its bankruptcy documents, the company claimed that it amassed a massive debt load that was directly correlated to the collapse of oil and natural gas prices. For a majority of the previous two years, natural gas prices have declined, and subsequently struggled to rebound, as they have averaged under $2 million per British Thermal Unit.
A Houston Business Journal report noted that the company has struggled with its debt load since 2014, as revenues fell from $183 million in the first quarter of 2015 to under $138 million by the first quarter of this year. Even so, the company only reported $21.8 million in losses in Q1 this year, as opposed to $25 million in revenues at the same time last year.
Nevertheless, this left the company with assets of only $1.28 billion and debts of more than $3.92 billion – all of which were unsecured. Then, after Ultra Petroleum failed over a series of months to negotiate refinancing agreements with any of its lenders and bondholders, the company was forced to seek bankruptcy protection.
The significance of the Ultra Petroleum filing
Ultra Petroleum’s bankruptcy petition comes less than a week after Midstates Petroleum announced that it had filed for Chapter 11 bankruptcy protection. According to The Journal, this has become a growing trend in the energy sector as more companies have struggled to adjust to the collapse of oil and natural gas prices. To date, 67 production and exploration firms have filed for Chapter 11 bankruptcy protection since 2015, which represents a 380 percent increase over 2014.
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 regarding oil & gas companies filing for Bankruptcy, check out:
- Venoco files for Chapter 11 Bankruptcy Protection
- Emerald Oil Inc Files for Chapter 11 Bankruptcy Protection
- Goodrich Petroleum Corp. Files for Chapter 11 Bankruptcy Protection
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Author: George McGowan
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
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.