Bankruptcy / Restructure Update | Financial Trouble | Capital Markets

Emerald Oil Files for Bankruptcy

Email    |    Print    |    Bookmark

You Need to login first

   |    Wednesday,March 23,2016

Emerald Oil, Inc. a pure play Williston/Bakken operator reported that the Company and its subsidiaries filed voluntary Chapter 11.

Emerald has obtained $20 million in post-petition debtor in possession financing, which, subject to Bankruptcy Court approval, will provide the Company with liquidity to maintain its operations in the ordinary course of business during the Chapter 11 process.

Prior to the Chapter 11 filing, Emerald executed a Non-Binding Term Sheet with Latium Enterprises, Inc. pursuant to which Latium has proposed to purchase substantially all of Emerald's assets and, subject to lender and Bankruptcy Court approval, would serve as a "stalking horse" in a sale process under section 363 of the Bankruptcy Code.

McAndrew Rudisill, President and Chief Executive Officer of Emerald, said, "The plan we are announcing today will provide for continuity in Emerald's current and future business operations. This process is the only path going forward and should enable the business to execute a turnaround in the current low oil price environment. Importantly, Emerald's plan and the Latium transaction would allow the business to continue to operate and would provide a sound path for potential recovery for Company stakeholders."

Intrepid Partners, LLC is serving as investment banker for Emerald, Kirkland & Ellis LLP is serving as legal counsel, and Opportune LLP is serving as financial advisor with Wade Stubblefield of Opportune serving as Chief Restructuring Officer.

A Quick look in Shale Experts Presentation Manager Database

Assets

Click to Enlarge Image