McKool Smith principal John Sparacino shared his expertise in bankruptcies filings with Business Insider’s article, “Some Cash-Strapped US Oil Companies Can't Even Afford Chapter 11 Bankruptcies. That Means They Have to Wait Things Out or Liquidate” In May, the oil price surged almost 90%; however, many upstream producers and oilfield-service companies are already in bad shape that they might not be able to afford Chapter 11 bankruptcy process. John explained, “In a Chapter 11 filing, the company maintains its management team and continues to try and maximize value through production, whereas in a Chapter 7 the company cedes business control to a trustee who quickly begins selling off assets… In this case, the goal is not to try and revive the business but to liquidate it as quickly as possible and pay back creditors.” Read the full article here.
