Some oil companies won't be able to afford Chapter 11 bankruptcy - Business Insider

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Some cash-strapped US oil companies can't even afford Chapter 11 bankruptcies, legal experts warn. That means they either have to wait things out or liquidate.

. The price per barrel surged by almost 90% for the month to settle at about $35 last Friday.

"It's going to be a very different wave of bankruptcies for the industry this time around," he said. "Obviously it's going to be bigger. But importantly, they're going to be harder cases to launch." ReutersWhen you hear that a company is going bankrupt, you may assume that it's essentially dead, never to return again.

"In most cases, this doesn't mean that they don't have the funds necessary to pay the minimal filing fees, but rather that they don't have the liquidity necessary to pay the sometimes-hefty retainers that could likely be required to retain professionals in advance of filing a case," Brandt said. "Even if there is some comfort on the bases to forecast demand, the fallout in the industry is likely to be so widespread that there is a question whether there will be enough funding available to meet the need," he said. 10 lawyers who navigated the biggest bankruptcies in history are seeing a boom in business thanks to a restructuring surgeFor some companies that can't afford to run a Chapter 11 case, they'll simply do nothing, Brandt said.

In some more dire situations, however, companies may file for another form of bankruptcy known as Chapter 7.

 

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Lets throw billions of wasted dollars at a commodity (oil) that is worth less than zero instead of the booming cannabis sector, deemed essential. Billions in taxes PAID! Legalize Cannabis Nationally Now

Lot of actual humans can’t either

time for a GreenNewDeal

Congo health ministry confirms at least 4 new EbolaOutbreak Deaths in Western city

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