Bloomberg reported a story about ATP Oil & Gas Corp., a Gulf of Mexico oil producer, getting approval for bankruptcy financing a week after they filed for bankruptcy. U.S. Bankruptcy Judge Marvin Isgur gave interim approval to the $618 million financing from Credit Suisse Group AG and other lenders after requiring that changes are made to certain terms.
“What we have is a situation where the debtor is absolutely out of cash, and the alternatives we are left with are to allow the debtor to proceed in a disorderly or orderly liquidation now or to give the debtor an opportunity to get back on its feet,” Judge Isgur stated.
ATP filed for bankruptcy on August 17. They said the 2010 Deepwater Horizon oil rig explosion and the drilling moratorium that followed are to blame for their bankruptcy. Most of ATP’s wells are in the Gulf of Mexico, and the moratorium prevented it from drilling and bringing six wells online back in 2010 and 2011.
Court papers say the approved bankruptcy financing provides $250 million in new money, in addition to refinancing $367.6 million in debt. ATP said it will return to court for final approval of the loans they have planned. Albert Reese, the chief financial officer for ATP, testified that the company cannot run without the financing.
A bankruptcy can be caused by a number of things. While you might not be struggling with oil rig explosions, there is no reason to deal with the legal intricacies of bankruptcy alone. Get experienced legal help to make your bankruptcy dealings easier. Contact a skilled Cook County bankruptcy attorney today.