Cubic Energy Inc., the latest Texas oil company brought down by falling oil prices, filed for bankruptcy protection after reaching a deal with its lenders to hand over control of the company, MarketWatch.com reported yesterday. The Dallas-based Cubic, which drills for oil and natural gas in Texas and Louisiana, said that it has agreed to cede control of the company to Wells Fargo Energy Capital and its secured bondholders, including an affiliate of Anchorage Capital Group. The company, which listed assets of $120.7 million and debts of $114.2 million in its bankruptcy petition, filed for chapter 11 with a pre-packaged bankruptcy plan having already secured the votes to secure passage of its debt-for-equity swap. Read more.
For further analysis and insight into oil and energy company bankruptcies, be sure to pick up a copy of ABI’s When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy.
