PJ Solomon has hired Tero Jänne to expand its restructuring capabilities into the energy sector at a time of significant dislocation in the oil and gas industry.
Chaparral Energy has hired financial advisers for advice on how to improve its balance sheet, sources said, adding that no debt restructuring move is imminent.
A large part of the oil and gas industry will go into a “financial intensive care unit” over the next few months as shale producers enter survival mode, an expert says.
Gulfport Energy has lost four-fifths of its market value since the start of the year, and now has a market cap of $90 million.
The collapse in oil and weak gas prices has further crippled Chesapeake Energy, the shale energy pioneer already facing a $9 billion debt pile.
A wounded oil and gas industry enjoys better numbers the day after prices plummeted, but steep debt will likely bring about a wave of M&A, bankruptcies and litigation.
Proceeds from the sale of Lummus Technology are expected to repay McDermott’s DIP financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.
In a time of economic uncertainty and significant disruption, oil and gas producers need to take steps today in order to capture value now and in years to come.
After essentially five years of an ongoing downturn, the oil and gas industry is desperately seeking solace.