ATP Oil & Gas Corp Files for Chapter 11 Bankruptcy Protection

by San Antonio Attorney

Houston Texas-based ATP Oil & Gas Corp filed for voluntary Chapter 11 reorganization on Aug. 17, blaming the suspension of the deepwater drilling after the explosion of the Deepwater Horizon.

ATP, which is an operator in the Gulf of Mexico, stated $3.64 billion in assets and a total of $3.49 billion in debts. It plans to continue its operations while reorganizing its finances with $618 million funds as debtor-in-possession.

In its filing with the bankruptcy court, the company said that its expansion plans and income had been adversely affected by the deep sea drilling suspension, which has been going on for several months after BP’s rig failed and caused the worst offshore spill in the country in April 2010.

According to ATP, its operations are heavily concentrated in the Gulf of Mexico that is why the impact of the accident to them is worse compared to their competitors.

The government’s moratorium on the deepwater drilling prevented its plans to build six wells in the past two years, after spending over $1 billion on the construction to five wells, mostly financed by debt, ATP said.

On April 19, 2012, ATP refinanced its debt. The following day, the Deepwater Horizon exploded. The government’s moratorium on deepwater drilling prevented ATP from completing it wells, or receiving the planned revenue from them.

They are filing for bankruptcy to undertake a thorough restructuring of the company’s finances, ATP said.

According to court documents, ATP’s unsecured debts include $53.8 million from Bluewater Industries, $15.4 million from Nabors Industries Ltd, and $12 million from Schlumberger Ltd.

The documents also show that the biggest shareholder of ATP is its CEO T. Paul Bulmahn with 12.1 percent, and second is Aletheia Research & Management Inc with 7.8.

In June, ATP stock had been trading more than $5 but its shares fell to 46 cents on Friday after it filed for bankruptcy protection.

 

–    If you find it very difficult to make all of your minimum payments every month on your net income and you are pushed deeper and deeper in debt, then seeking bankruptcy protection may be the best solution to stop your problems. But considering that bankruptcy laws are complicated, it is advisable to find San Antonio Lawyers who handle bankruptcy cases.

 

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