U.S. oil and gas producer Energy XXI Ltd. may seek chapter 11 protection as soon as next week if oil prices remain low and it fails to refinance its debt, the company said in a regulatory filing, Reuters reported yesterday. Brent crude has rallied in recent weeks to above $40 a barrel, but prices are still far below the $60 per barrel break-even level for the Houston-based company. With some $4 billion in liabilities as of Dec. 31, a bankruptcy filing by Energy XXI would be the second biggest energy-related failure since a prolonged slump in oil prices has put a slew of oil and gas producers at risk of default. Energy XXI missed an $8.8 million interest payment on senior notes on Feb. 16 and has been trying to reach a deal with debt holders to restructure its balance sheet before a 30-day grace period ends on March 17. Read more.
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