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.
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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.