Buccaneer Energy Files for Bankruptcy

by San Antonio Attorney

Buccaneer Energy Limited and its subsidiaries in United States filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.

The filing was made on the deadline set by the Alaska Oil and Gas Conservation Commission (AOGCC). Buccaneer Energy is required by the commission to open an escrow account with a bank in Alaska that is regulate by the state. The company’s production net revenue has to be deposited in the account until an allotment of gas due to each of the adjoining landowners is completed or upon AOGCC’s order.

As part of the Chapter 11 bankruptcy process, Buccaneer Energy has also made a deal with its secured creditor on some vital aspects of a reorganization plan that would lead to the sale of all its assets.

If the plan is implemented, Buccaneer Energy hopes to repay its primary secured creditor and other secured creditors, and finish the bankruptcy in some recovery for it unsecured creditors.

The oil and gas company expects to have adequate funds during its Chapter 11 proceedings to cover all of its obligations. For this reason, Buccaneer is not planning to seek for debtor-in-possession (DIP) funding in its reorganization because it will still operate and manage its assets while it is restructuring.

Buccaneer has also filed the usual “first day” motions with the court so that it can continue to do business while it undergoes reorganization. Included in the filings is the motion allowing the company to pay the regular compensation and benefits of its employees. The company will also file a motion seeking to establish the course of action and schedule within which it plans to sell all of its assets.

Buccaneer Energy Limited, an independent Cook Inlet explorer, is an Australian company.

 

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