Case Study: Bankruptcy

A small independent oil company filed for Chapter 7 of the Bankruptcy Code.  The Trustee appointed from the Bankruptcy Court panel had no oil and gas experience.  The working interest owners, as creditors of the estate, removed the Chapter 7 Trustee and voted in one of our oil  and gas partners as the Chapter 7 Trustee.  Over the next year and a half, our partner liquidated the oil and gas properties, distributed the proceeds to the secured and unsecured creditors, and negotiated with the regulatory agencies to resolve various environmental liabilities.