Dropping oil prices cause Paragon Offshore to seek bankruptcy | The Colpitts Law Firm
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Dropping oil prices cause Paragon Offshore to seek bankruptcy

Millions of Americans in Oklahoma and across the country are likely rejoicing over the low price of gas. The prices are potentially a financial lifesaver for many families. Unfortunately, some companies are actually suffering as a result.  For example, an offshore oil driller has recently sought bankruptcy protection.

As many oil companies are realizing, the shifts in oil prices are causing problems with their bottom line. Paragon Offshore has been another victim of these prices, leaving the company struggling with a significant amount of debt. Fortunately, representatives for the company claim that a majority of their debt holders have agreed to a bankruptcy deal that will allow the company to reduce over $1 billion in debt.

The company claims that it is taking proactive measures to ensure its continued success. Paragon's CEO believes that the decision to seek bankruptcy will ultimately strengthen the company's financial outlook. As part of the deal, bondholders will own 35 percent of the company, and employees will be relatively unaffected. Because many oil companies are reducing the amount of production, other companies focusing on drilling could be susceptible to similar financial woes.

Many businesses in Oklahoma have found themselves in a similar situation as Paragon. Regardless their efforts, they find themselves struggling with debt due to issues over which they have little or no control. Fortunately, they have options available that can help them manage their debt and seek stable financial ground. An attorney with bankruptcy law experience can help these businesses better understand their options and seek appropriate relief.

Source: USA Today, "Off-shore driller tumbles into Chapter 11 bankruptcy", Nathan Bomey, Feb. 15, 2016

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