Some San Antonio-area energy companies are joining the ranks of firms falling into bankruptcy after more than a year of sinking oil prices, the Houston Chronicle reported on Friday. In the past month, four private companies operating in the oil and gas industry have filed for reorganization or liquidation in the San Antonio division of the U.S. Bankruptcy Court for the Western District of Texas. Nationwide, dozens of oil patch companies have filed for bankruptcy, gone out of business or kept operating with heavy debt since oil prices began falling last year. Most are smaller, privately held companies like the four in San Antonio, but chapter 11 filings also include a handful of publicly traded Houston companies that are continuing to operate during reorganization. "You're seeing the smaller oil field supply companies and services companies' contracts melting away," said San Antonio bankruptcy lawyer Glen Ayers. "There's no new business." Three of the four companies filing in the San Antonio division sought chapter 7 liquidation. They are: JM Oilfield Services, a Gonzales, Texas-based company that operated a fleet of vacuum trucks for saltwater disposal; Hunt, Texas-based BMC Oilfield Supply; and San Antonio, Texas-based operator New Voyage Enterprises. Read more.
For more information on oil and gas bankruptcies, be sure to pick up a copy of ABI’s When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy.
