WBH Energy Partners facing bankruptcy as credit dries up
WBH told a Texas federal bankruptcy court earlier this week that Minnesota-based debt investor Castlelake has refused to give the company more funds under its current credit facility, Fuel Fix said.
The company said it is unable to pay its operating expenses for multiple joint operating agreements with several unnamed vendors.
WBH has over $30 million in liabilities and $10 million in assets including 2,6000 net acres of oil and gas leases in North Texas where the company has three producing wells.
Neither WBH nor Castlelake have commented on the matter.
If WBH successfully declares bankruptcy it would be the first U.S. oil firm to do so in the wake of collapsing oil prices.
Analysts have warned that small producers are particularly vulnerable to current price instability and could turn to mergers if low prices continue to strain their coffers.
“Overextended producers will either be filing for bankruptcy or be swallowed up by larger producers. I think you’ll see some rapid defaults,” managing partner at SunGuard Financial Systems Austin Morris told Fuel Fix.