American Eagle files for bankruptcy
American Eagle Energy Corp. of Denver and its wholly-owned subsidiary, AMZG Inc., filed voluntary petitions in US Bankruptcy Court for the District of Colorado seeking relief under Chapter 11 reorganization provisions.
The independent has operations in the Williston basin of North Dakota, targeting the Bakken and Three Forks. Separately, Sabine OIl & Gas Corp. also filed for Chapter 11. Sabine operates in the Eagle Ford and Haynesville shales.
Quicksilver Resources, WBH Energy Partners, and Dunn Energy Inc. previously filed for Chapter 11 (UOGR, May/June 2015, p. 8).
Fitch Ratings noted an increased energy-default rate.
"Significant decreases in oil and gas market prices have impaired many E&P companies' ability to pay interest and principal and led to some defaults," Fitch said.
In May, American Eagle said it would continue to operate the business as debtors-in-possession under the jurisdiction of the bankruptcy court.
American Eagle filed a series of motions requesting authority to continue normal operations, including the payment of employee wages and salaries and providing employee benefits without interruption.
Brad Colby, American Eagle's chief executive officer and president, said the Chapter 11 process will provide flexibility for the company to pursue options for asset sales or other alternatives.
