US oil producer Goodrich Petroleum files for voluntary Chapter 11 restructuring

Jessica Morris
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Goodrich Petroleum is based in Houston (Source: Getty)

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.

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