Cubic Energy Inc.,
Cubic Energy Inc., the most recent Texas oil organization brought around falling oil costs, petitioned for chapter 11 assurance in the wake of achieving an arrangement with its loan specialists to hand over control of the organization.
Dallas-based Cubic, which drills for oil and regular gas in Texas and Louisiana, said in a part 11 documenting Friday in U.S. Chapter 11 Court in Wilmington, Del., that it has consented to surrender control of the organization to Wells Fargo Energy Capital Inc. what’s more, its secured bondholders, which incorporate assets oversaw by Anchorage Capital Group LLC.
In the same way as other of its companions in the oil and gas area, Cubic has been hit by the huge decrease in prices.
Determinedly low prices have constrained more than three dozen North American oil and gas organizations into insolvency this year, as per law office Haynes and Boone LLP.
Cubic likewise staggered when its penetrating contractual workers were not able finish well upgrades, impelling the chapter 11 recording
The organization, which was searching for a purchaser for over a year however found no takers, petitioned for part 11 with a purported prepackaged chapter 11 arrangement having as of now secured adequate votes from loan bosses to win entry of its obligation for-value swap.
Cubic has $126.4 million under water, including $29.9 million secured by the Louisiana properties, owed to Wells Fargo. The bank will take control of the Louisiana property, while reserves oversaw by Anchorage, Corbin Capital Partners LP and O-CAP Management LP, will claim whatever is left of the advantages. The organization’s current shares will be crossed out under the proposed arrangement.
Cubic’s speculation investors evaluate the revamping estimation of Cubic’s advantages is between $46 million and $76 million, and the estimation of the Cubic Louisiana property is at most $10 million.