Dune Energy Eaten Away with Low oil Prices
Dune Energy Inc. petitioned for liquidation security in the wake of falling oil prices brought on a proposed merger with Eos Petro Inc. to go into disrepair. Its outstanding shares are standing around 72,644,643, while authorized share are at 4,200,000,000.
The Houston-based vitality organization petitioned for Chapter 11 protection in U.S. Liquidation Court in Austin, Texas, posting resources of $229.5 million and obligations of $144.2 million. Senior loan specialists are owed $39 million, while second-lien moneylenders are owed about $68 million.
As a state of a $10 million liquidation credit, Dune’s senior loan specialists are requiring that the organization put itself available to be purchased. Pre bankruptcy showcasing endeavors neglected to deliver a lead offer, court papers say.
In a statement recorded with the court, Dune’s rebuilding boss, Donald R. Martin, said the decrease in oil prices cut into the organization’s primary concern, with 2014 income of $43 million down from $55.5 million in the earlier year. After Dune stumbled money related contracts on its advance, its banks restricted how much the organization could acquire, inciting the Chapter 11 recording.
“Amid 2014, as an aftereffect of a critical decrease in oil prices, the account holders’ incomes fell forcefully,” Mr. Martin said. “In spite of the fact that the account holders could diminish costs, the noteworthy decrease in income forced a strain on the indebted individuals’ liquidity.”
Established in 1998, Dune’s possessions incorporate properties covering more than 74,000 gross sections of land crosswise over 15 creating oil and normal gas fields in Texas and Louisiana. Vitality delivered is sold fundamentally to residential pipelines and refineries, court papers say.
Rise started searching for a purchaser a year ago and settled on Eos, whose merger offer esteemed the organization at $135.9 million, as indicated by Mr. Martin.
Eos, be that as it may, was eventually not able to arrange the financing, and the merger assertion was ended. As indicated by Dune, it is owed $5.5 million as a separation charge. A representative for Eos couldn’t promptly be achieved Monday for input.