According to The Wall St. Journal, Oklahoma oil and gas producer Chaparral Energy Inc. is claiming a key advantage as it launches a bankruptcy turnaround effort: $152 million in bank accounts beyond the reach of secured lenders. How nice.
Chaparral recently filed for chapter 11 bankruptcy protection with funds still in the bank. The story says, “Instead of being forced to make concessions to lenders that would tie its hands in a restructuring, which is what often happens in bankruptcy, the cash gives the Oklahoma company a measure of freedom. When Chaparral appears Wednesday for its debut hearing in the U.S. Bankruptcy Court in Wilmington, Del., it will seek court orders allowing it to cover payroll and pay essential bills, as well as a court order authorizing it to use its free cash.”
Sure, go ahead and use your cash. It’s not like you just declared bankruptcy or anything. Wait…
So what if you’re one of the companies in this long feeding line to whom money is owed? Well, you’d better get up there fast before that $152 million is long gone.
If you’re facing this scenario in your business, Dean Sperling Law can save your place in the bankruptcy buffet line and make sure there’s still some good chicken left for you instead of only lime Jell-O and leftover stale croutons. Contact us today to find out more.