Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Emerald Oil Inc Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: April 11, 2016
Key Contacts
Back
Emerald Oil Inc files Chapter 11
Recently, oil and gas producer Emerald Oil Inc. announced that it had filed for Chapter 11 bankruptcy protection. According to The Wall Street Journal, Emerald became just the latest victim of the collapse and subsequent sluggish recovery of oil prices. As a result, the company officials stated that Emerald intends to seek an auction sale of its remaining assets.
Emerald Oil spirals into debt
In bankruptcy documents, Emerald’s Chief Financial Officer explained that the company has halted its exploration and extraction activities. Forty percent of its workforce was let go in the aftermath of the downturn, while the company struggled to refinance its debt load on four separate attempts. Its access to capital markets was limited, which significantly reduced its reserves and dramatically decreased its corporate value.
Following the submission of its bankruptcy petition, Emerald reported over $360 million in debts to $405 million in assets. Despite the recent rebound of oil prices, the company’s long-term outlook was still negative.
Emerald Oil’s reorganization plan
According to its bankruptcy petition, Emerald plans to seek an auction sale. Latium Group has submitted an offer to purchase the company, and will serve as the stalking horse bidder in the auction. In a statement, Emerald CEO McAndrew Rudisill explained that the executive team views Latium Group’s offer as the best option for the company to emerge from the bankruptcy process as a viable business.
Prior to the auction, Emerald plans to maintain normal business operations with a $20 million loan from Latium Group. This loan is subject to court approval, but the company believes it will enable it to maintain value for potential buyers.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
For more related articles on oil companies filing for Bankruptcy, check out:
- Paragon Offshore Files for Chapter 11 Bankruptcy Protection
- Arch Coal Inc. files for Chapter 11 Bankruptcy Protection
- Swift Energy files for Chapter 11 Bankruptcy Protection
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.