Oil Company Run By Forbes 30-Under-30 Winner Files For Chapter 11 Bankruptcy

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An oil company run by ForbesUnder30 winner Matthew Owens has filed for Chapter 11 bankruptcy

Owens continues to accumulate valuable experience. He has already negotiated $125 million of debtor-in-possession financing with primary creditor Wells Fargo, and a debt-for-equity swap that will enable deleveraging.

It’s unclear whether there will be any value left for current holders of common stock, led by various Yorktown Partners funds, with about 40%. In keeping with recent bizarre trading patterns in insolvent issues, over the past two weeks Extraction shares have jumped from 28 cents, up to $1.42 a week ago, and are now down to 56 cents.

Whether Owens survives the restructuring is yet to be seen. A spokesman for Extraction did not reply to an email request this morning. The oil industry is full of second, third and fourth acts . And although investors may ultimately lose money on Extraction, Owens has done well for himself — the company this year announced $6.7 million in retention bonuses for 16 executives.

In terms of debt load, Extraction now becomes one of the biggest oilpatch bankruptcies so far this year. Other big ones, according to the

 

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