Sanchez Energy Files For Chapter 11 Bankruptcy Protection

The independent E&P focused on the Eagle Ford joins a growing list of companies filing bankruptcy.

(Source: Shutterstock/Hart Energy)

(Source: Shutterstock/Hart Energy)

Battered by low commodity prices and operational challenges, Eagle Ford Shale player Sanchez Energy Corp. has filed for bankruptcy.

The move, announced by the Houston-headquartered company on Aug. 11, followed an extensive review of alternatives, the company said. It also comes about five months after the independent E&P was delisted from the New York Stock Exchange and less than a month after it said it was deferring making an interest payment on its 6.125% senior notes due 2023.

Court documents show the company has about $2.85 billion in debt and assets valued at about $2.16 billion as of June 30. Of Sanchez’ 30 largest unsecured claims, Delaware Trust Company topped the list with two unsecured claims totaling about $1.79 billion.

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Velda Addison

Velda Addison is the senior editor of digital media for Hart Energy’s editorial team. She covers energy with a focus on renewables.