Goodrich Petroleum Files for Chapter 11

Goodrich Petroleum Files Chapter 11
Goodrich Petroleum Files Chapter 11

The energy slump has claimed another victim as the Eagle Ford Producer, Goodrich Petroleum, files for bankruptcy.

Related: Goodrich Finalizes Eagle Ford Deal

Goodrich Petroleum announced this week that it was seeking to eliminate approximately $400 million in debt through a Chapter 11 restructuring plan.

In January, the struggling company was removed from the NYSE based on abnormally low price levels.

Has your oil & gas producer filed bankruptcy? Learn how to protect yourself.

Prior to the Chapter 11 filing, the Company attempted to restructure its balance sheet through voluntary exchange offers, with the latest effort unsuccessful due to the inability to get the necessary approvals from its common stockholders, preferred stockholders and unsecured noteholders.

In September, Goodrich announced it would sell much of its Eagle Ford Shale acreage to Houston-based EP Energy for $118 million and included property in LaSalle and Frio Counties, Texas. The sale was a last ditch effort by Goodrich to keep the itself afloat and pay off existing debt.

Other recent Eagle Ford bankruptcies include Magnum Hunter, Swift Energy and Sabine Oil & Gas. Last month a New York judge ruled in that Sabine Oil & Gas would be able to cancel the contracts it holds with midstream firms as part of its restructuring process during bankruptcy. Many are concerned that this decision will encourage other struggling producers to follow suite and file for bankruptcy if they know they can get out of such obligations.