Sunday, October 12, 2014

Endeavour Files for Bankruptcy in Debt Swap With Bondholders


Oct. 11, 2014 11:54 a.m. ET
Endeavour International Corp. END -15.45% , a Houston-based oil and gas company, filed for bankruptcy protection late Friday night as part of a debt-for-equity swap with bondholders that will slash about $568 million in debt off the company’s books.

The Chapter 11 filing in U.S. Bankruptcy Court in Wilmington, Del., comes after the company reached the terms of a restructuring pact with more than two-thirds of its bondholders, court papers said. The company has been negotiating with its bondholders for months, with the latest round of talks taking on renewed urgency after Endeavour skipped a $33.5 million interest payment on Sept. 2.

“It is abundantly clear that to successfully reposition itself for long-term viability, the company must undergo a comprehensive delevering and reduce its interest burden,” said Chief Executive William L. Transier in a declaration filed Friday night with the court. 

Endeavour, a small, independent oil and gas exploration and production company, has suffered from “unfavorable changes” in the economic and political climate for the industry, as well as natural disasters, volatile commodity prices and unexpected delays in new oil and gas production due to operating difficulties in the U.K. North Sea, Mr. Transier said. . . .

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