Restructuring – Oil & Gas

The US energy market is presently in an adjustment period that will drive a number of near term changes in the market including decreasing credit availability for E&P companies as a result of upcoming borrowing base reductions, more cautious investing on the public and private equity side, and tighter debt structuring from public and private lenders. The decreased capital availability for E&P companies is already driving adjustments in E&P CAPEX budgets, which in turn has placed downward pressure on oil field service company revenue as contracts are being renegotiated at lower rates.

This adjustment will both create opportunities and difficulties for energy lenders and investors as well as E&P and oil field service companies. In some cases, these adjustments may be limited to a slowdown in a company’s rate of growth. For other companies, US$30 barrel oil will be catastrophic. The question for lenders, investors and energy companies is what kind of opportunity (or difficulty) has been created.

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We have experience at all levels of the E&P and oil field services company capital structure and industry related controversies and have been through multiple fluctuations in the energy market. The team is drawn from industry experts that represent energy senior, mezzanine and second lien lenders, debt and equity funds and specialty lending funds focused on distressed and near distressed energy companies. Team members include former special assets and loan review bankers who understand restructuring in federally regulated institutions, bankruptcy and restructuring lawyers experienced in energy in out-of-court and Chapter 11 restructurings and litigators experienced in the intricacies of the energy market.

We have a long history of successful representation in the oil and gas industry and our team of energy professionals offers solutions to the legal challenges our clients currently face. Selected finance related services that our team can provide include:

Oil, gas and oil field services loan review with a view to workout and other special assets issues
Credit agreement and collateral documentation review with a view to workout and restructuring
Distressed debt and energy loan portfolio sales or purchases
Energy restructuring litigation counsel
Pre-bankruptcy and bankruptcy advice and representation
Energy asset or equity M&A purchase or sale representation
Loan officer training with respect to distressed energy assets
Energy market analysis and policy advice

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We have deep experience in energy and oil and gas insolvency matters and have recognized expertise in fashioning creative solutions for distressed oil and gas businesses and their counterparties. We understand the legal documentation unique to the oil and gas industry, including oil, gas and mineral leases, joint operating agreements, ORRI agreements, production payments, and drilling and other service contracts. We also have a thorough understanding of oil and gas engineering reports and the financing documentation related to oil and gas lending.

Agent bank – Counsel in US$200 million restructuring and DIP facility in Chapter 11 case of Milagro Oil and Gas.
Quicksilver Resources – Lender counsel in Chapter 11 case in D. Del.
US bank – Counsel as indenture trustee and chair of the Official Committee of Unsecured Creditors in the chapter 11 case of Energy & Exploration Partners in Fort Worth, Texas.
Coronado Coal – Counsel as interested bidder for the assets of Patriot Coal in its Chapter 11 case in the E. D. Virginia.
Magnum Hunter Resources Corporation – Counsel to a second lien lender in its Chapter 11 case in D. Del.
Official Committee of Unsecured Creditors of Enron – Co-counsel and lead structured finance and litigation counsel and advised Committee on more than 25 energy related M&A transactions.
William O’Connor – Bank counsel to an oil and gas producer in its Chapter 11 case in Oklahoma.
Kendavis Industries, Inc. – Bank counsel in Chapter 11 case in the Northern District of Texas.
Brio Refinery, Inc. – Bank counsel to a fuel refinery. The case started in Chapter 11, later converted to Chapter 7.
MAP 1978 Drilling Partnership – Counsel to Chapter 11 bankruptcy trustee of in the Northern District of Texas appointed to operate numerous oil and gas production partnership investment entities.
TECO-Panda – Chapter 11 restructuring counsel to the owner of the two largest combined-cycle natural gas power plants in the world.

Contact

Stephen Lerner Cincinnati