Rex Energy Corp. said that it expects to file for bankruptcy “imminently” after talks with lenders and bondholders on restructuring its balance sheet outside of court protection were unsuccessful, WSJ Pro Bankruptcy reported. The State College, Pa.-based natural-gas fracking company said in a regulatory filing this week that it would seek chapter 11 protection after lenders, owed about $270 million, pulled the plug on restructuring talks and accelerated payment. Rex also has more than $600 million in bond debt outstanding. Rex Energy had entered into a forbearance agreement with lenders including Canyon Partners LLC, AllianceBernstein and TPG Specialty Lending Inc. to forestall a default arising from a missed interest payment. Like a number of other fracking companies, Rex Energy’s business has been hurt by the sustained decline in natural-gas prices caused by a glut in supply.
