Energy company seeks Chapter 11 bankruptcy protection | The Colpitts Law Firm
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Energy company seeks Chapter 11 bankruptcy protection

There are a variety of factors that contribute to the overall financial situation of a company in Oklahoma and across the country. While success can often be due to quality, hardworking employers, market conditions can also contribute to a company's overall success. Unfortunately, a decrease in oil prices has left hundreds of energy companies struggling. Recently, C&J Energy Services Ltd. has followed the path of multiple other companies and sought Chapter 11 bankruptcy protection.

In addition to drilling wells, the company also provides other related services. In court papers, the company has explained an agreement that would allow it to exchange over $1 billion in debt with ownership for lenders who own the majority of the company's debt. The agreement must still be approved by the court.

The company, based in Bermuda, filed for bankruptcy with U.S. courts four months after its chief executive officer unexpectedly passed away. Reports indicate that over 100 hundred energy companies have sought bankruptcy protection over the course of the last two years. C&J hopes to emerge from bankruptcy within the next six months.

Successful businesses spend time planning for their futures, setting goals and creating a strategy to meet the goals. Unfortunately, there are often unforeseen factors at play that can interfere with the best plans. An attorney with experience with bankruptcy law can help businesses in Oklahoma that are struggling with debt create a new plan that includes debt relief. For many companies, that plan includes a Chapter 11 bankruptcy filing.

Source: Reuters, "C&J Energy files for bankruptcy to cut $1.4 billion in debt", Tom Hals, July 20, 2016

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