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American Eagle Energy files bankruptcy to restructure or sell assets
By Caroline Salls
Pittsburgh, May 11 – American Eagle Energy Corp. filed Chapter 11 bankruptcy on May 8 in the U.S. Bankruptcy Court for the District of Colorado.
American Eagle said the sharp decrease in oil and natural gas prices in excess of 50% from the time its pre-bankruptcy notes were issued has made it difficult to obtain capital for further development of its leasehold interests.
Unable to raise additional capital in this environment, the company said it was faced with declining assets and revenue while costs remained relatively constant.
As crude oil prices remained low, American Eagle said it and an informal committee of noteholders continued discussions on maximizing value and ultimately decided that the Chapter 11 filing would give the company the best opportunity to restructure or sell its assets.
In connection with the filing, the company requested court approval to use the cash collateral related to its 11% senior secured notes due 2019 to fund its operations while in bankruptcy.
According to court documents, American Eagle Energy has $211.88 million in total assets and $215.22 million of total debt.
The company’s largest unsecured creditor is Halliburton Energy, based in Dallas, with a $3.45 million high pressure pumping services claim. American Eagle did not list any other unsecured creditors with claims of $1 million or more.
Wellington Management Group LLP owns 7.41% of the company’s voting securities, Power Energy Partners owns 7.39%, and BlackRock, Inc. owns 5.9%.
Baker & Hostetler LLP represents the company.
American Eagle is a Littleton, Colo.-based independent oil and gas acquisition, exploration and development company. The Chapter 11 case number is 15-15073.
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