General News | Debt | Capital Markets
Lenders Prep to Take Over Shale Assets as Oil Prices Crumble
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Banks that have made investments in oil and gas companies are poised to take ownership of assets as the drop in oil prices cripples a large number of E&Ps, according to a report by Reuters.
Companies like JP Morgan Chase, Wells Fargo, Bank of America and Citigroup will seek to recoup their losses by taking control of the physical assets of E&Ps that are now bankrupt or close to. This will be done through the creation of independent subsidiaries created by the lenders.
According to the report, the oil/gas companies and related entities likely owe approximately $200 billion to various lenders.
Many of these companies have already filed for bankruptcy or have hired debt advisors to assist.
A Look at Bankruptcies - 2015-2020
Source: Haynes Boone
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