EdgeMarc Energy Holdings LLC filed for bankruptcy yesterday, saying that a pipeline explosion last year has disrupted production and made it unable to meet its obligations, WSJ Pro Bankruptcy reported. The Canonsburg, Pa.-based natural gas fracker said it has lined up $108 million in financing from KeyBank, its main existing lender, to help it get through chapter 11 while it looks for a buyer. The majority of EdgeMarc’s LLC units are owned by the private-equity arms of Goldman Sachs Group Inc. and the Ontario Teachers’ Pension Plan, according to a declaration filed in U.S. Bankruptcy Court in Wilmington, Del., EdgeMarc drills for natural gas in the Appalachian Basin, with 60 wells concentrated in the Marcellus and Utica shale formations. The company has about $77.79 million outstanding under a secured revolving credit facility and no other funded debt, according to court papers. Read more.
Get a better understanding of what happens when an oil, gas or other natural resources company goes bankrupt. Order your copy of ABI's revised and expanded When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy, Second Edition.
