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
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
Author: Bryce S. Robins
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
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.