Pennsylvania residents may be interested in the financial difficulties of one energy company and how they are seeking to resolve the issues. Like many who are in need of debt relief, they have turned to bankruptcy as the solution to their problems.
Texas energy company Quicksilver Resources has announced that they are filing for Chapter 11 bankruptcy due to an anticipated shortfall in liquidity in early 2016. The reasons given for this liquidity are the recent fall in oil prices and the company's increasing debts. According to reports, Quicksilver has $1.2 billion in assets, compared to nearly double that amount in debts. The company admitted they have not been able to successfully market the sale of assets in order to combat this debt, nor have they been able to find other alternatives that could lead to increased liquidity.
The company turned down a bid for acquisition by investors in 2011. Quicksilver's stock has since been downgraded to junk status, due to the lack of bids on assets that were more recently put up for auction. Because of this, Quicksilver plans to go through the Chapter 11 business reorganization process. This will allow the company to restructure its liabilities and, hopefully, pull themselves out of their current situation. Quicksilver says they do not anticipate any halt in their U.S. and Canadian operations during the restructuring.
Dealing with the financial challenges that a business or individual can face may be difficult without the assistance of an attorney. The attorney may be able to assess the situation and recommend options for debt relief, whether they involve bankruptcy or negotiations with creditors. The attorney might also be helpful in filing the bankruptcy and representing the debtor throughout the process.
Source: Business Insider, "A major US energy company has filed for bankruptcy," Akin Oyedele, March 18, 2015