Gastar Exploration Files for Bankruptcy

Laxman Pai
Tuesday, October 30, 2018

The pure play Mid-continent energy company Gastar Exploration will file for bankruptcy with support from the company's largest creditor and shareholder, the Los Angeles private equity group Ares Management.

The financially struggling Houston company said the prepackaged bankruptcy plan will eliminate more than $300 million in debt but give controlling ownership of the company to Ares.

Gastar said the restructuring was developed after marketing efforts failed to yield any viable proposals to repay or refinance its existing debt or to sell the company or its assets.

"The agreed restructuring was developed after extensive marketing efforts failed to yield any viable proposals to repay or refinance the Company's existing indebtedness or to sell the Company or its assets," said a press release from the company.

The company needs new capital to continue to operate, and the restructuring support agreement (RSA) and related new capital commitment will ensure that the Company can continue to operate its business in the ordinary course.  Post-restructuring, the Company will have a strengthened balance sheet that will facilitate capital investment in operations.

 Jerry R. Schuyler, interim Chief Executive Officer and Board Chairman of Gastar Exploration Inc., said, "The restructuring agreement we signed today is a comprehensive plan that will ensure Gastar remains competitive in its industry.  We can now set our sights on facilitating a smooth, efficient in-court restructuring while continuing to meet our obligations to our employee and vendor constituencies.  I am proud of the exceptional hard work and dedication of all our employees throughout this process."


Categories: Shale Oil & Gas Energy Exploration Offshore Offshore Energy People & Company News

Related Stories

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Seatrium Secures ABS Backing for Deepwater FPSO Design

Brownfield Output Decline Accelerates, says IEA

POSH Set to Tow Nguya FLNG from China to Eni’s Congo Field

DOF Secures Moorings Hook-Up Job in Asia Pacific

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Yinson, PTSC Get $600M Contract for Vietnam-Bound FSO

Woodside Finds South Korean Partners to Advance LNG Value Chain

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Current News

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

Pakistan, Türkiye Deepen Oil and Gas Ties with Offshore Indus-C Block Deal

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com