PostRock Energy and five affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Western District of Oklahoma, lead case number 16-11230.
The Company, which engages in the acquisition, exploration, development, production and gathering of crude oil and natural gas, is represented by Mark A. Craige of Crowe & Dunlevy.
According to a corporate release, “After extensively exploring alternatives and thorough consultation with its legal and financial advisors, PostRock’s board of directors determined, in consultation with its secured lenders, that an orderly sale of the Company’s assets through a Chapter 11 process would be the most prudent and effective way to maximize value for PostRock’s creditors. PostRock does not expect any recovery for its stockholders and expects that its stockholders will lose their entire investment.”
The Company notes, “Like many other exploration and production companies, PostRock’s operations have been significantly impacted by the recent and dramatic decline in oil prices, the continued low prices of natural gas, and general uncertainty in the energy market.” The Company also announced the resignation of current directors Duke R. Ligon, Alexander P. Lynch, William H. Damon III, J. Philip McCormick and Clark W. Edwards, effective upon the appointment of a Chapter 11 trustee.
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