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Sundevil Holdings Holdings LLC, which operates two gas-fired power plants in Gila Bend, Arizona filed for yesterday for chapter 11 protection, Reuters reported. The company, owned by private equity firm Wayzata Investment Partners, listed $100 million to $500 million of both assets and liabilities in its filing with the U.S. Bankruptcy Court in Wilmington, Del. The company said that it would seek court approval to borrow $45 million to support its operations during its bankruptcy.

Offshore Group Investment Ltd., (OGIL) a subsidiary of Vantage Drilling Co., has completed its prepackaged restructuring and recapitalization plan to emerge from bankruptcy and plans to change its name, the company announced on Feb. 10, the Houston Business Journal reported today. The deepwater company had filed for chapter 11 in December to reduce the $1.45 billion in debt that lenders and creditors had in OGIL. Through the plan, Vantage and OGIL eliminated more than $1.5 billion of senior secured debt and received $75 million in new exit financing. The plan had called for a debt-for-equity swap that converted $75 million of lenders' and creditors' debt into equity and a share of $750 million in senior subordinated notes. Now that the recapitalization process is complete, OGIL will change its named to Vantage Drilling International. Read more.

Get a better understanding of what happens when an oil, gas or other natural resources company goes bankrupt with ABI’s When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy. 

Investment firm EIG Pacific Holdings Ltd. said yesterday that it had extended the deadline and changed some terms for its offer to buy nearly all the debt of Colombia's largest private oil producer, Pacific Exploration & Production Corp., Reuters reported. The deadline for the offer for Pacific's $4.1 billion in debt has been extended until March 24 from Feb. 10. As part of the new offer, EIG, a subsidiary of Harbour Energy Ltd., said that it had reduced the amount it is willing to pay bondholders because oil prices have continued to drop and Pacific E&P's financial condition has deteriorated.

Noranda Aluminum Inc. won court approval to draw $25 million against a bankruptcy-financing package that may run as high as $165 million as it launches a restructuring that will likely involve the sale of its profitable flat-rolled product line of business, Dow Jones Daily Bankruptcy Review reported today. The Franklin, Tenn.-based company is trying to salvage its primary aluminum business in chapter 11 and went to court yesterday to get access to desperately needed cash. Noranda agreed to test the market for buyers for its flat-rolled business, which produces foils for consumer and industrial uses, in order to get existing lenders to finance its bankruptcy.

Nora Pykkonen, who purchased Echo Mountain Resort in 2012 with plans to develop a private ski racing training facility, has filed for bankruptcy, the Denver Post reported today. Unable to repay the creditor who financed her original purchase, Pykkonen last Friday filed for chapter 11 protection, citing $1.45 million in debt to the resort's top 20 creditors, consisting mainly of $100,000 to $200,000 loans. The mother and co-founder of the Seattle-based Slalom Consulting management firm was pondering a move to Vail in 2012 to foster her family's avid pursuit of ski racing. Instead, she bought the 226-acre ski area in Clear Creek County and converted it into a private, membership-only training ground for school-age ski racers. She hired Olympic-level coaches and promised $5 million in upgrades. Ski clubs and university teams from across the country booked time and lanes. She sold memberships in her new Front Range Ski Club for $5,000. However, fees from race training were not enough to pay the bills.

Federal health regulators who moved to cut off Medicaid payments to a Georgia nursing home after finding broken toilets during a January inspection have been stymied by the nursing home's bankruptcy, which put the dispute in front of a judge, Dow Jones Daily Bankruptcy Review reported today. In court papers, Department of Health and Human Services officials told Judge Nicholas W. Whittenburg that the agency has the power to end the provider agreement with Jeffersonville Healthcare & Rehab LLC despite the legal protections the 120-worker facility got after filing Jan. 22 for chapter 11 protection. Officials threatened to cut off that agreement after they found the facility's plumbing system had broken down, flooding patient rooms.

Chesapeake Energy Corp., the U.S. natural gas driller that’s been slashing jobs and investor payouts to conserve dwindling cash flows, lost half its value after a report that it hired restructuring attorneys, Bloomberg News reported yesterday. The shares dropped a record 51 percent after Debtwire reported that Chesapeake retained Kirkland & Ellis to help restructure a $9.8 billion debt load. The plunge triggered three circuit-breaker halts during the first half hour of trading and extended Chesapeake’s 12-month loss to about 93 percent. The free fall wiped out $838 million in market value in the first hour of trading on Monday. Burdened with a debt load eight times larger than its market value, Chesapeake has been canceling drilling projects, trimming its workforce and closing offices to slow the rate at which it burns through cash. Gas, which accounts for about 80 percent of Chesapeake’s production, has averaged about $2.56 per million British thermal units during the past year, down 38 percent from a year earlier.

Oil and gas producer Warren Resources Inc. warned that it would have to seek bankruptcy protection if talks to reach a debt restructuring agreement fails, Reuters reported today. Warren, which today also cut its 2016 revenue and production forecasts, had deferred a $7.5 million semi-annual interest payment that was due on Feb. 1 to reach a deal with its creditors. The company has a 30-day grace period for negotiations with noteholders, since deferring interest payment on Feb. 1. Several oil producers, whose cash flows have been squeezed by a 70 percent fall in oil prices since June 2014, are in talks with creditors to defer payments and improve liquidity. Warren, which has tapped Jefferies LLC to help with a potential restructuring, forecast total revenue to fall 31.7 percent to $61.1 million in 2016, from a year earlier. Read more.

For further analysis of what happens when an oil, gas or other natural resources company goes bankrupt with ABI’s When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy.