Jeremy Fielding Interviewed on Rise in Energy Bankruptcy Filings
Texas businesses filing for bankruptcy to either restructure or reorganize their companies increased dramatically during the first half of 2017, with more than half of those filings coming from the health care and energy sectors. In an article that appeared in publications statewide, including the Houston Chronicle, San Antonio Express-News, Laredo Morning Times and Dallas Business Journal, the firm’s Jeremy Fielding says many oil and gas industry businesses knew they needed to file for bankruptcy last year, but waited.
“… they needed to file for bankruptcy in 2016 because of their crushing debt load, but they held off until oil prices climbed into the $40 to $50 range because it would give the companies more options in their efforts to restructure. Companies are in a much better position if they are cash-flow positive headed into bankruptcy, because then the whole issue is dealing with the crushing debt and not restructuring the entire operation,” Fielding says. “If companies are losing money and have unbearable debt going into a bankruptcy, then the companies are at the total mercy of the banks and lenders.”
Read the entire article, originally published by The Texas Lawbook, here.