American Eagle Energy Files For Bankruptcy -- May 11, 2015

This is an old story; I can't remember if I posted it earlier. Business Insider is reporting:

The latest fallout from the oil crash is here: American Eagle Energy has filed for Chapter 11 bankruptcy protection.

In March, the company missed its first interest payment of nearly $10 million to bondholders, and entered a 30-day grace period. American Eagle hired financial advisers to negotiate with bondholders.

And according to the Wall Street Journal's Patrick Fitzgerald, the company filed for bankruptcy protection in a Denver court, listing assets of $221.9 million and debts of $215.2 million.

And from today's Yahoo!In-Play:

American Eagle Energy confirms it will begin voluntary Chapter 11 proceedings: Co will continue to operate the business as debtors-in-possession  under the jurisdiction of the Bankruptcy Court. 

American Eagle has filed a series of motions with the Bankruptcy Court requesting authority to continue normal operations, including requesting Bankruptcy Court authority to continue paying employee wages and salaries and providing employee benefits without interruption.

Co stated: "We believe the Chapter 11 process will provide flexibility for American Eagle to  pursue viable options for asset sales or other alternatives with the goal of  maximizing the value of the enterprise  for our stakeholders."

This is not the first company to file for protection in the Bakken; at least two others, I think, one for sure, have filed, and that was during the "boom." Life goes on.

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