Another North Dakota shale oil driller has filed for bankruptcy protection. On May 20, 2016, Intervention Energy Holdings LLC, and its affiliates (“Debtors”) sought chapter 11 protection from the United States Bankruptcy Court for the District of Delaware.
Other Williston Basin, ND shale oil victims include Emerald Oil Inc., and Halcón Resources Corp., which indicated that it plans to file for chapter 11 protection if it can get enough creditors to sign off on a deal that would let it restructure more than $3 billion in debt.
According to the Declaration of John R. Zimmerman in Support of the Debtor’s Chapter 11 Petitions and First Day Motions, depressed crude oil prices have contributed to the Debtors’ downward spiral. The Debtors seek first day relief at a first day hearing scheduled for tomorrow, May 25th at 2:30 p.m. Among other things, the Debtors have filed a cash collateral motion, wage motion, and a motion to maintain insurance coverage.
The case is pending before the Honorable Kevin J. Carey. The Debtors are represented by the law firm of DLA Piper.