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
Corporate Consolidation and Antitrust Issues in Mergers post image

Corporate Consolidation and Antitrust Issues in Mergers

Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]

Author: Dan Brecher

Link to post with title - "Corporate Consolidation and Antitrust Issues in Mergers"
What is Business Law and Why Is it Important? post image

What is Business Law and Why Is it Important?

Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]

Author: Dan Brecher

Link to post with title - "What is Business Law and Why Is it Important?"
Corporate Transactions: Best Practices for Successful Deals post image

Corporate Transactions: Best Practices for Successful Deals

Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]

Author: Dan Brecher

Link to post with title - "Corporate Transactions: Best Practices for Successful Deals"
How to Conduct a Fair and Legal Employee Termination in 2025 post image

How to Conduct a Fair and Legal Employee Termination in 2025

Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]

Author: Angela A. Turiano

Link to post with title - "How to Conduct a Fair and Legal Employee Termination in 2025"
Admin Dissolution for Annual Report: What You Need to Know post image

Admin Dissolution for Annual Report: What You Need to Know

While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]

Author: Dan Brecher

Link to post with title - "Admin Dissolution for Annual Report: What You Need to Know"
What Is Antitrust Litigation Law? post image

What Is Antitrust Litigation Law?

Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]

Author: Robert E. Levy

Link to post with title - "What Is Antitrust Litigation Law?"

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. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

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