US oil producer Goodrich Petroleum files for voluntary Chapter 11 restructuring
Another US oil producer has been forced to file for bankruptcy protection under Chapter 11 this week as energy companies struggle amid low oil and gas prices.
Houston-based Goodrich Petroleum filed for voluntary restructuring today to cut around $400m (£282m) debt from its balance sheet, leaving behind just $40m in debt related to a first lien reserve based loan facility.
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The company added that it expects to maintain sufficient liquidity during the restructuring process to continue running its operations.
It comes after a deal with second-lien bondholders that required them to swap $175m in debt for 100 per cent of the restructured firm.
Earlier this week, another Houston-based oil and natural gas producer, Energy XXI, filed for bankruptcy after a a grace period for missed interest payments expired.
Energy companies have struggled with oil prices tumbling over 60 per cent from over $110 per barrel in the middle of 2014.
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Goodrich was forced to filed for bankruptcy protection under Chapter 11 after failing to secure approval for a debt-fo-equity swap which would've shored up its stretched balance sheet.
It also delisted its shares from the New York Stock Exchange due to the low price.