An Ounce of Protection is Worth a BBL of Cure

Oil & Gas Financial Journal

Oil prices remain near all-time highs and some oil companies are reporting record-breaking year-end 2007 profits. There are rumbles, but no immediate signs of lessening demand, and OPEC has announced it will keep production level. Most oil patch investors, lenders, and credit managers think they have it pretty easy.

Those doing business with large, well-financed entities are right to take life a bit easier. However, as the price and profit run-up of the last few years attracted eager money looking to cash-in on the oil boom, some of that money found homes with outfits that had more sizzle than steak

As a result, many investors and creditors currently find themselves holding positions in companies that are in, or headed for, Chapter 11. Since June 2006, there have been at least two dozen outfits (counting affiliates) that have landed in Chapter 11 – some voluntarily, some involuntarily – in Texas bankruptcy courts alone. Bankruptcy cases for oil and gas or service companies have also been filed in other jurisdictions, including that hotbed of drilling activity, New York City. In a few non-bankruptcy situations, investors and creditors have filed suit over disputes ranging from unpaid bills to securities fraud.

Read more.

The publications contained in this site do not constitute legal advice. Legal advice can only be given with knowledge of the client's specific facts. By putting these publications on our website we do not intend to create a lawyer-client relationship with the user. Materials may not reflect the most current legal developments, verdicts or settlements. This information should in no way be taken as an indication of future results.

Search Tips:

You may use the wildcard symbol (*) as a root expander.  A search for "anti*" will find not only "anti", but also "anti-trust", "antique", etc.

Entering two terms together in a search field will behave as though an "OR" is being used.  For example, entering "Antique Motorcars" as a Client Name search will find results with either word in the Client Name.


AND and OR may be used in a search.  Note: they must be capitalized, e.g., "Project AND Finance." 

The + and - sign operators may be used.  The + sign indicates that the term immediately following is required, while the - sign indicates to omit results that contain that term. E.g., "+real -estate" says results must have "real" but not "estate".

To perform an exact phrase search, surround your search phrase with quotation marks.  For example, "Project Finance".

Searches are not case sensitive.

back to top