Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Venoco Company files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: April 12, 2016
Key Contacts
Back
Venoco files Chapter 11
Venoco, one of the biggest oil and gas companies in the U.S., recently announced that it had filed for Chapter 11 bankruptcy protection. According to the Pacific Coast Business Times, the company cited the fall of oil prices and a pipeline spill last year for its $1 billion debt total. As a result, the company shut down operations at its major California pipeline.
Venoco struggles with the fall of oil prices
In its court papers, the company claimed that it was forced to shut down its Plain All American pipelines in California after a spill. This was particularly bad timing for Venoco as it corresponded with the collapse of oil prices last year. With the close of the Plain All American pipeline, the company was no longer able to reach broader markets with the output from its South Coast offshore oil platforms.
Despite its insolvency, however, the company’s CEO Mark DuPuy explained in a statement that it has the cash to maintain current operations throughout the bankruptcy period.
“While we continue to be in a strong cash position, the declining price of oil and the ongoing closure of Plains All American pipeline 901 continue to be serious problems,” DePuy noted.
Venoco reorganization plan calls for executive restructure
Venoco stated that it has secured a refinancing agreement with its senior lenders that will significantly decrease its debt total, while also infusing new capital into operations. With its balance sheet restructured, the company can re-negotiate its lending terms and suspend its debt payments.
In its bankruptcy petition, the company also announced that founder Tim Marquez will continue to serve as executive chairman throughout the bankruptcy period. There is no word whether he will maintain this position in the newly restructured company following the reorganization process.
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.
Otherwise, for more articles on oil or gas companies filing for Bankruptcy, head to:
- Emerald Oil Inc Files for Chapter 11 Bankruptcy Protection
- Paragon Offshore Files for Chapter 11 Bankruptcy Protection
- Swift Energy 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.
Related Posts
See all
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
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.