Oil and gas producer Warren Resources Inc. warned that it would have to seek bankruptcy protection if talks to reach a debt restructuring agreement fails, Reuters reported today. Warren, which today also cut its 2016 revenue and production forecasts, had deferred a $7.5 million semi-annual interest payment that was due on Feb. 1 to reach a deal with its creditors. The company has a 30-day grace period for negotiations with noteholders, since deferring interest payment on Feb. 1. Several oil producers, whose cash flows have been squeezed by a 70 percent fall in oil prices since June 2014, are in talks with creditors to defer payments and improve liquidity. Warren, which has tapped Jefferies LLC to help with a potential restructuring, forecast total revenue to fall 31.7 percent to $61.1 million in 2016, from a year earlier. Read more.
For further analysis of what happens when an oil, gas or other natural resources company goes bankrupt with ABI’s When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy.
