Earlier today, July 15, 2015, Sabine Oil & Gas Corporation filed for Chapter 11 Bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. The exploration and production company is the latest to become affected by the decline in global oil prices, joining American Eagle Energy Corp., Dune Energy Inc. and Quicksilver Resources Inc. in bankruptcy this year. Sabine Oil has tried everything to cope with the decline in energy prices, including selling assets, cutting expenses for drilling and new wells, and even going as far as to freeze wages, but it still wasn’t enough. According to papers filed in court, the company had about $2.5 billion in assets and $2.9 billion in liabilities as of May 31.
Sabine Oil said in a statement that it’s discussing a consensual financial restructuring plan with lenders and debtholders. In the meantime, the company expects to support itself with its cash on hand and funds generated from ongoing operations.