Oilfield services company Seventy Seven Energy Inc. said that it intended to file for a pre-packaged chapter 11 bankruptcy on or before May 26, the latest energy company to seek bankruptcy protection amid a prolonged oil price slump, Reuters reported yesterday. The company, which was spun off from Chesapeake Energy Corp. in 2014, said that it had entered into a restructuring agreement with certain lenders that would allow it to convert about $1.1 billion of its debt into equity. A more than 60 percent fall in global oil prices since mid-2014 has forced about 50 North American oil and gas producers to seek bankruptcy protection. Weak oil prices have also prompted oil producers to severely curtail spending, weighing on demand for the oilfield services provided by companies such as Seventy Seven Energy. Read more.
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