Junk-Debt Investors Fight for Scraps as U.S. Shale Rout Deepens
- `It’s every man for himself' as companies seek debt relief
- Goodrich, Halcon penalize lenders with distressed exchanges
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It’s every U.S. shale investor for himself as the worst oil rout in almost 30 years drags down its latest victims.
Investors in $158.2 million of Goodrich Petroleum Corp.’s debt agreed to take 47 cents on the dollar in exchange for stock warrants for some note holders and a lien on Goodrich’s oil acreage, according to a company statement today. That puts them second in line if the Houston-based company liquidates its assets in bankruptcy and pushes the remaining holders of $116.8 million in
original bonds to the back of the pack.