Energy Industry Bankruptcies Toolkit
Resources providing guidance to debtors, creditors, and their counsel in energy restructurings and addressing the multitude of strategies, challenges, and issues involved in energy company bankruptcy cases.
A variety of factors have made it difficult for companies in the oil, gas, and coal industries to stay afloat in recent years. In particular, oil and natural gas prices have plummeted, primarily due to increased supply and declining demand. Aside from the macroeconomic pressures, oil, gas, and other energy producing companies also suffer from significant debt obligations, environmental obligations, and in some instances, legacy liabilities owed to current and former employees. Due to the confluence of these factors, energy restructurings are on the rise.
Debtors and creditors involved in Chapter 11 ( www.practicallaw.com/1-500-6505) proceedings in the energy industry face unique challenges that include:
Difficulties associated with reserve-based financing ( www.practicallaw.com/7-583-2606) facilities and potential liquidity issues.
Treatment of royalty interests and compliance with the automatic stay ( www.practicallaw.com/4-382-3248) concerning working interests, setoff ( www.practicallaw.com/6-382-3817) , and recoupment ( www.practicallaw.com/0-382-3735) .
Characterization and treatment of gathering and processing agreements as executory contracts ( www.practicallaw.com/0-382-3453) under section 365 of the Bankruptcy Code.
Abandonment or plugging of oilfields and compliance with environmental laws and regulations.
The energy industry consists of a variety of distinct sectors, including:
Oil and gas.
Each energy sector has its own particular legal challenges. This Toolkit provides resources that cover topics, including:
General energy industry and environmental laws.
Recent transactions within the energy industry.
General bankruptcy matters.
Bankruptcy matters specific to the energy industry.
This Toolkit contains continuously maintained practice notes, standard documents, checklists, country Q&A, and articles to help debtors and creditors develop strategies to protect their interests throughout an energy company's bankruptcy proceedings.