Linn Energy filed bankruptcy as a result of the unstable energy market, making it the largest provider to do so. With much planning and reorganization, they reached an agreement to continue working through the Chapter 11 process. Headquartered in downtown Houston, the company employs 1,650 workers, adding to an $8.3 billion deficit.
The decision came after the company continued bleeding money with low prices and increasing debt. Since they are one of the few partnership producers, they made a decision to sell hedges on future productions to honor paying investors. But suspending the agreement in October was not enough to bandage increasing debt.
They put creditors on the back burner to buy time and negotiate with lenders. To no avail, they agree bankruptcy “may be unavoidable.”
Article written by HEI contributor Marcela Abarca.