Misery Index for the Week of January 15, 2018

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PacerMonitor’s look back at this week's most compelling bankruptcies

Oil and Gas Company EXCO Resources Lands in Bankruptcy

Oil and natural gas exploration and production giant EXCO Resources filed for chapter 11 in the Southern District of Texas with $1.395 billion of funded debt obligations against total assets of about $829 million. The company cited the sustained slump of commodity prices after falling short in its turnaround efforts over the last two years. No specific path for the case has been set, but the filings indicate the company could end up restructuring or selling substantially all of its assets to a new buyer. The company will be funded during the bankruptcy by a $250 million loan from prepetition secured debt holders Fairfax Financial Holdings and Bluescape Resources.

Declaration

Petition

 

First River Falls with Sustained Low Oil Prices

Midstream oil transport company First River Energy, only formed in 2014, has also fallen victim to the drop in oil prices. First River’s business operates by purchasing, selling and transporting crude oil through its pipelines or trucks. The company’s financial issues hit a peak in December, when its borrowings exceeded its borrowing base, leading to an event of default. No agreement was reached with lenders, leaving the company with no other viable options but to file for chapter 11. The company has already began winding down operations, reducing headcount to 14 from 75 while the company liquidates all its assets.

As of the filing the company had roughly $14 million in secured debt and listed total assets in the $10 million to $50 million range inclusive of $26 million of accounts receivable.

Declaration

Petition

 

Well-Known Eclipse Berry Farms Seeks to Complete Liquidation in Chapter 11

Los Angeles-based Eclipse Berry Farms, parent of Rosalyn Farms, filed chapter 11 a year after the passing of the longtime co-owner and co-founder Robert Wiviott. The company sought to sell the business as going concern starting in March 2017, but had to shift focus to liquidating its assets when Wells Fargo Bank decided it would not renew the company’s credit line. Eclipse Berry ultimately filed for chapter 11 to provide an orderly liquidation of the estates, fully wind down the company and address all outstanding claims.

The company listed assets of $10 million to $50 million at the time of filing and liabilities of $50 million to $100 million.

Declaration

Petition

 

Penthouse Magazine Finds Itself Back in Bankruptcy Court.

Adult magazine publisher Penthouse Global Media goes for its third trip through chapter 11, this time under CEO Kelly Holland, who bought the magazine rights in 2016 from FriendFinder Networks after its chapter 11 filing. Penthouse did not specifically list the factors that led it to chapter 11, but the company took on a large debt load from investment firm ExWorks Capital during the management buyout. The adult magazine industry has faced many challenges as a whole, with reports this month that Playboy will put an end to its print publication as well. Penthouse listed liabilities of $10 million to $50 million at the time of filing.

Petition

 

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