Fieldwood Energy LLC, an oil driller that operates in the Gulf of Mexico, is preparing to file for bankruptcy within days as it grapples with the prolonged slump in commodity prices exacerbated by the coronavirus pandemic, WSJ Pro Bankruptcy reported. The impending bankruptcy, which would be Fieldwood’s second in two years, underscores the challenges facing the offshore sector, which is more capital-intensive and requires more equipment than onshore drilling. The company has been in discussions with lenders about the provision of a roughly $100 million debtor-in-possession facility to fund the bankruptcy proceedings. Houston-based Fieldwood exited its latest bankruptcy in 2018 after having raised money from junior lenders to recapitalize the company and pay for the acquisition of Noble Energy Inc.’s assets in the Gulf of Mexico. Noble Energy has no relation to Noble Corp. Privately held Fieldwood has roughly $1.8 billion in debt, according to FactSet. Fieldwood has hired law firm Weil, Gotshal & Manges LLP and consulting firm AlixPartners LLP for help on restructuring its debt after having missed interest payments earlier this year. A group of lenders has been working with law firm Davis Polk & Wardwell LLP.
