An­other Den­ver oil com­pany files for bank­ruptcy

The Pak Banker - - MARKETS/SPORTS -

Cit­ing the "dra­matic de­cline in oil prices, the con­tin­ued low prices of oil and nat­u­ral gas, and the general un­cer­tainty in the en­ergy mar­kets," an­other Den­ver en­ergy com­pany has filed for bank­ruptcy pro­tec­tion. Emer­ald Oil Inc said it's filed vol­un­tary Chap­ter 11 pe­ti­tions in the U.S. Bank­ruptcy Court for the Dis­trict of Delaware. Its oil and gas op­er­a­tions are lo­cated in the Wil­lis­ton Basin of North Dakota and Mon­tana.

Cit­ing the "dra­matic de­cline in oil prices, the con­tin­ued low prices of oil and nat­u­ral gas, and the general un­cer­tainty in the en­ergy mar­kets," an­other Den­ver en­ergy com­pany has filed for bank­ruptcy pro­tec­tion.

Prior to the bank­ruptcy fil­ing, Emer­ald said it reached a deal with Latium En­ter­prises Inc. of Eng­land to sell "sub­stan­tially all of Emer­ald's as­sets" and to serve as a "stalk­ing horse" in the bank­ruptcy process.

"The plan we are an­nounc­ing today will pro­vide for con­ti­nu­ity in Emer­ald's cur­rent and fu­ture busi­ness op­er­a­tions. This process is the only path go­ing for­ward and should en­able the busi­ness to ex­e­cute a turn­around in the cur­rent low oil price en­vi­ron­ment. Im­por­tantly, Emer­ald's plan and the Latium trans­ac­tion would al­low the busi­ness to con­tinue to op­er­ate and would pro­vide a sound path for po­ten­tial re­cov­ery for com­pany stake­hold­ers," said McAn­drew Ru­d­is­ill, pres­i­dent and CEO of Emer­ald, in a state­ment.

Emer­ald head­quar­ters are at 200 Columbine St. in Den­ver and the com­pany has 42 em­ploy­ees, ac­cord­ing to Ya­hooFi­nance. It's the sec­ond Den­ver en­ergy com­pany bank­ruptcy fil­ing this month: On March 18, Venoco Inc., an oil and gas com­pany fo­cused on pump­ing oil in south­ern Cal­i­for­nia, filed a vol­un­tary pe­ti­tion for Chap­ter 11 bank­ruptcy pro­tec­tion.

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