California Resources, the largest oil driller in the state, has filed for Chapter 11 bankruptcy protection, becoming the latest casualty of an oil price crash that coincided with the coronavirus pandemic that wiped out as much as 20 million bpd of demand in April alone.
In a press release, the company said it had agreed a restructuring plan with most of its shareholders, which will see its debt pile significantly reduced, by about $5 billion, “enabling the Company to operate safely through the current downturn in commodity prices and establishing a solid financial foundation to enhance future value creation.”
The U.S. oil industry, especially shale, has been hit particularly hard by the crisis, with cash shortages and high debt levels reducing companies’ flexibility during the downturn.
Read the source article at Crude Oil Prices Today
Home
