Energy XXI files for Chapter 11

Houston-based oil and gas producer Energy XXI announced on Thursday it has filed for Chapter 11 bankruptcy protection amid the oil price drop-off, according to the Houston Chronicle.

The company, which specializes in Gulf of Mexico projects, will continue operations under court-supervised restructuring for the benefit of its creditors, as entailed in Chapter 11.

In its statement the company said it has around $180m cash in hand plus funds from ongoing operations, which will enable it to carry on functioning.

Under the deal Energy XXI, a prominent shallow water driller in the Gulf, will erase around $2.8bn in debt from its balance sheet.

Energy XXI is the latest in a series of heavily indebted oil firms to head for the bankruptcy route because of the precipitous decline prices the past two years.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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