Jamie Sprayregen, Brian Schartz and George Kildonas examine the range of approaches that energy companies take to restructure their debt - from full equitization to reinstatement of pre-petition debt.
An excerpt of the article is below:
"The energy industry, and the oil and gas market in particular, has been suffering from a persistent malaise since late 2014. In December 2015 oil and natural gas prices plummeted to unprecedented lows. As a result, the North American oil and gas industry has faced an unprecedented wave of Chapter 11 filings and other restructuring transactions. These restructurings have presented courts and the industry with many unique issues. Where a company’s capital structure allows it, there has been a trend of gravitating away from traditional bankruptcy filings and leaning towards prearranged equitization. This trend is likely the result of a desire to reduce Chapter 11 costs and diminish the risk of a resulting liquidation."