Rising financial stress in the U.S. energy sector has prompted some suppliers and vendors to take unusual legal action to collect unpaid debts: forcing struggling companies with billions of dollars in debt into bankruptcy, Reuters reported today. Since August, creditors have filed petitions for involuntary bankruptcy against three energy producers with nearly $2 billion in combined debt: Miller Energy Resources Inc., Black Elk Energy Offshore Operations and Energy & Exploration Partners Inc. During that period, there have been a total of seven bankruptcies involving energy companies with at least $200 million in debt. "Some producers are getting very, very far out there with what they owe their suppliers," said John Sparacino, a bankruptcy attorney with Vorys, Sater, Seymour and Pease in Houston, who represented driller National Oilwell Varco in the Miller involuntary filing. Lawyers expect more bankruptcies unless crude prices recovers. "If oil continues below $40 a barrel, we should expect to see even more energy filings, both voluntary and involuntary," said John Penn, a bankruptcy lawyer with Perkins Coie in Dallas.
