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Bankruptcy Watch: 4/29/16

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As banks complete their Spring re-determination, the process where banks calibrate their credit levels for producers, the squeeze of 10-30% reductions are being felt as a growing number of producers have delayed their 10k reporting due to pending credit agreement defaults which need to be resolved in order to continue as a going concern. This week the following companies have announced, or indicated, they are pursuing some form of restructuring

 

 

Ultra Petroleum, the largest Gas producer in Wyoming, disclosed in their 10Q that due to market conditions, "substantial doubt exists that we be able to continue as a going concern" as result of their $3.9B debt. The company also listed a present lawsuit with Tallgrass Development's Rockies Express Pipeline as described below 

 


 

 

Tallgrass Development (TDev) also disclosed that Ultra has defaulted on their past and future obligations, and the company is seeking to recover $300MM.   TDev announced this past week that Talllgrass Energy Partners plans to acquire a 25% interest in REX, which some investors believe has significant contracting exposure from the Rockies region.  

 

 

 

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