ATP Oil & Gas Corporation
(NASDAQ:ATPG) is planning to negotiate an amount of $600 million that will help
the company run its operations during the bankruptcy proceedings.
ATP may file for
bankruptcy protection in near future as per report from The WSJ. ATP has been discussing about financial
parameters and probable bankruptcy filing with senior creditors on Friday.
After the market closed on Friday, ATP stated in a securities filing that it
will take some more time to file its second quarter results since it is not
able to determine whether there will be any alteration in its operational
outcomes at the end of the quarter on 30th June.
Can
ATPG Rebound Soon? Find Out Here
Shares of ATP that is
based in Houston had fallen 73% on Friday to 36 cents. Since May, the stock has
lost nearly 95%. Simultaneously, the company’s 11.875% bonds due 2015 have gone
down 57% in the previous year. That includes 2% on Friday to 36 cents on the
dollar.
ATP was founded in 1991
by current Chairman T. Paul Bulmahn. The company produces gas and oil in the
Gulf of Mexico, the North Sea and the Mediterranean Sea. It invests in
properties that have been proven to hold gas and oil but has been put down by
larger explorers keen on entering larger ventures. This strategy takes off some
chances out of offshore exploration. However, the business of tapping the ocean
floor for gas and oil is burdened with risk. ATP often operates in deep water;
a single well can cost hundreds of millions of dollars.
The company has had
rosy days. When the company was at its peak, in 2007, its shares used to trade
above $57. ATP was hurt by the ban imposed on drilling Gulf of Mexico after the
deadly Deepwater Horizon disaster in 2010. The company, however, was the first
among the others to resume drilling last spring even though most analysts had
predicted that it would be an end to all the small businesses.
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