Texas Oil Drilling Company Energy XXI Files for Chapter 11 Bankruptcy

by San Antonio Attorney

Two oil drillers based in Houston recently filed for Chapter 11 bankruptcy protection within one day as the oil drilling company continuously affects companies, whether small-scale or large-scale.  The protection will end on Friday and the company intends to shed off $3.2 billion of debt to the creditors.

Energy XXI, revealed the intent of the company and the fellow subsidiaries intention of eradicating approximately $2.8 billion of debt from the balance sheet, with exception of first lien reserves and revolving credit lines, as shown in to court papers filed.

Energy XXI disclosed a roster of 26 affiliated companies affected by the bankruptcy filing.

John Schiller, President and Chief Executive, will retain his job position and also keep a board seat, according to a press release last Thursday.  The company assures the public that it still possesses enough liquidity and claims to have $180 million dollars on hand.

Energy XXI runs its operations on the shelf of the Gulf of Mexico, in collaboration with ExxonMobil.

The company employed the “acquire and exploit” tactic that led them to discover the Davy Jones ultra-deep well in 2010.  As of January 2015, almost 50 oil companies have filed for Chapter 11 Bankruptcy protection.  This occurred as the price of oil per barrel has plummeted to its 2013 price, as reported by the Houston Chronicle.

Drillers are not the only companies affected by the sudden drop of prices.  According to Brebart Texas, flagship companies such as Chevron have experienced massive layoffs.  Oilfield services such as Halliburton and Baker Hughes have initiated a merger after they were sued by the United States Department of Justice.

Energy XXI’s bankruptcy filing is handled by Attorney Bradley Foxman, a lawyer based in Houston.  The filing was received in the U.S. Bankruptcy Court Southern District Branch of Houston.

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