Another energy company has succumbed to bankruptcy in the wake of the Covid-19 pandemic.
Nine Point Energy Holdings, Inc., a private exploration & production company focused on the Williston Basin, and its affiliates, including Foxtrot Resources LLC, filed for chapter 11 protection in the United States Bankruptcy Court for the District of Delaware, on March 15, 2021. The Chapter 11 petition states that the company’s liabilities are between $100 million and $500 million.
The Denver-based oil and gas company plans to enter into an agreement for debtor-in-possession financing and a stalking horse credit bid, which the debtors anticipates to come from their secured lenders.
Nine Point was founded in 2017, and currently operates 205 oil and gas wells, which are largely located in the Williston Basin oilfield in North Dakota. The predecessor of Nine Point, Triangle Petroleum Corporation, previously filed for chapter 11 bankruptcy protection in Delaware in 2016.
A first-day hearing is scheduled for March 17, 2021 at 2:00 p.m. to consider the Debtors’ first-day motions. The case is assigned to the Honorable Mary F. Walrath, case no. 21-10570.
Carl D. Neff is a partner with the law firm of FisherBroyles, LLP, and practices in Delaware. You can reach Carl at (302) 482-4244 or at Carl.Neff@FisherBroyles.com.