Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Major Oil Transporter, Murphy Energy, Files Chapter 11

Author: Joel R. Glucksman

Date: December 6, 2016

Key Contacts

Back

Murphy Energy Corp., one of the largest oil and natural gas transporters in the nation, recently announced it had filed for Chapter 11 bankruptcy protection. According to The Wall Street Journal, the company’s financial struggles are due in large part to the collapse of oil prices. Currently, Murphy Energy is looking for potential buyers for all or a portion of its terminals throughout Oklahoma and Texas.

Murphy Energy falls into debt

In its bankruptcy filings, the energy transporter reported that its operating capital was depleted due to the ongoing construction of its recent terminals in the Port Hudson and Port Allen areas of Louisiana. The Journal reported the company listed $75 million in debt liabilities, due in large part to the new facilities and significant decline of fuel prices since 2014. This debt included more than $57 million owed to Bank of America, $7 million to Mabrey Bank and various other creditors.

Murphy Energy also cited in court papers that a failed buyout last year factored heavily into its decision to seek Chapter 11 bankruptcy protection. This purchase offer would have effectively paid off its debt load and paid all of its owners. However, the deal fell through when the buyer unexpectedly backed out. In the aftermath of the sudden back out, the company was not given enough time to negotiate deals with its creditors about restructuring its debt repayment schedule.

The company’s decision to file for bankruptcy came when Bank of America refused to extend the repayment deadlines. As a result, Murphy Energy sought Chapter 11 bankruptcy protection to prevent Bank of America from taking majority ownership of the company.

Prior to the filing, Murphy Energy officials believed they would be able to maintain operations and eventually pay down its debt load.

The significance of the Murphy Energy filing

The company’s bankruptcy filing marks just the latest in a long line of domestic energy companies this year. With prices on the oil market hovering around $40 per barrel now, down from over $100 two years ago, it has become difficult for these companies to maintain cash flow and operating capital.

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 articles regarding energy companies filing for bankruptcy, check out:

  • Atlas Resources Files for Chapter 11 Bankruptcy Protection
  • The Biggest Bankruptcy Filing in Brazilian History Filed by Oi SA
  • Chaparral Energy Inc. 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
SPACs Are Back, What You Need to Know post image

SPACs Are Back, What You Need to Know

Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]

Author: Dan Brecher

Link to post with title - "SPACs Are Back, What You Need to Know"
Short Form Merger: Streamlining the Process for Businesses post image

Short Form Merger: Streamlining the Process for Businesses

Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, like all M&A transactions, it is important to understand the legal nuances and proper due diligence in mergers and acquisitions. What Is a Short Form […]

Author: Dan Brecher

Link to post with title - "Short Form Merger: Streamlining the Process for Businesses"
Tariff Response Options for Small Businesses Facing Financial Distress post image

Tariff Response Options for Small Businesses Facing Financial Distress

The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]

Author: Brian D. Spector

Link to post with title - "Tariff Response Options for Small Businesses Facing Financial Distress"
Common Causes of Partnership Disputes and How to Resolve Them post image

Common Causes of Partnership Disputes and How to Resolve Them

Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]

Author: Christopher D. Warren

Link to post with title - "Common Causes of Partnership Disputes and How to Resolve Them"
President Trump's Termination of Member Gwynne Wilcox post image

President Trump's Termination of Member Gwynne Wilcox

On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]

Author: Matthew F. Mimnaugh

Link to post with title - "President Trump's Termination of Member Gwynne Wilcox"

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!