U.S. offshore oil and gas producer Fieldwood Energy said Tuesday it had filed for chapter 11 bankruptcy to restructure the company.
The company filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas.
Fieldwood Energy, focused on the exploration and development of offshore oil and gas assets in the Gulf of Mexico, said it would continue to operate its business in the normal course during the pendency of the Chapter 11 cases "and will continue working with its vendors, co-working interest owners, and employees to support the operations."
"Fieldwood expects to have access to sufficient liquidity to meet financial obligations during the restructuring, including cash on hand and a debtor-in-possession facility provided by certain of its First Lien Term Loan lenders. The Chapter 11 process will encompass a comprehensive restructuring of the Company," the company said.
It said it had entered into a Restructuring Support Agreement ("RSA") with the support of key members of the company's lender group, including holders of approximately two-thirds of the obligations under its First Lien Term Loan facility.
"Fieldwood has filed a series of motions with the Bankruptcy Court which, when granted, are expected to enable the Company to maintain its operations as usual throughout the restructuring process," the company said.
Mike Dane, the Company's Senior Vice President and Chief Financial Officer, said: "Today's announcement reflects the next step in our efforts to respond to the challenging market environment and Fieldwood's liabilities. Over the last several months, we have worked collaboratively with numerous important stakeholders to evaluate our options and proactively manage our balance sheet. The transactions contemplated in our RSA to be implemented through Chapter 11 represent the best course of action for Fieldwood and all our stakeholders and we look forward to implementing this plan."
Fieldwood's Chapter 11 case is being heard in the United States Bankruptcy Court for the Southern District of Texas.
A little over a month ago, on July 1, Fieldwood said its founder and CEO and Chairman Matt McCarroll would step down to pursue other opportunities.