U.S.-based Fieldwood Energy has filed for Chapter 11 bankruptcy as part of its efforts to restructure the company.
Fieldwood said on Tuesday that it 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.
The Gulf of Mexico-focused oil and gas producer added that it would continue to operate its business normally during the pendency of the Chapter 11 cases and would continue working with its vendors, co-working interest owners, and employees to support operations.
Fieldwood also stated that it 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.
To support the restructuring, the firm entered into a restructuring support agreement with the support of key members of the company’s lender group.
“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 SVP and CFO, 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 “.
This Chapter 11 relief petition comes just over a month after Matt McCarroll , the former president, CEO, and chairman of the company, stepped down to “pursue other opportunities”.
It is worth noting that this is not Fieldwoods first Chapter 11. Namely, Fieldwood filed for bankruptcy back in February 2018 but it did successfully exit bankruptcy in April that same year .
In related company news, Fieldwood hired the Valaris JU-118 rig – formerly known as Joe Douglas – for a three-well campaign offshore Mexico with an estimated duration of 425 days.