Goodrich Petroleum Files for Bankruptcy Protection
U.S. shale oil producer Goodrich Petroleum Corp said on Friday that it filed for Chapter 11 bankruptcy protection with a plan to eliminate $400 million in debt from its balance sheet while it rides out a slump in commodities markets.
The Houston-based exploration and production company, which has shale assets in Texas, Louisiana and Mississippi, joined more than 40 energy-related companies that have sought court protection from creditors since oil prices plummeted 20 months ago.
In a bankruptcy filing with the Southern District of Texas, Goodrich Petroleum listed assets in the range of $50 million to $100 million and liabilities between $500 million and $1 billion.
The company said in a statement that operations would continue as normal, with wages, expenses and royalties to be paid throughout the court restructuring process.
The bankruptcy petition followed a failed attempt to secure approval for a debt-for-equity swap meant to restructure its balance sheet, it said.
The company said the court-supervised plan would eliminate all debt except for $40 million outstanding on its first-lien reserve-based loan facility.
The case is in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, case number 16-31975. (Reporting by Tracy Rucinski; Editing by Toni Reinhold)
