Two Texas-based shale players have filed for Chapter 11 bankruptcy protection as both companies suffered from lower commodity prices and net losses in the second quarter.
Eagle Ford operator Sanchez Energy filed for reorganisation this week as the Houston-based company cited a challenging oil and natural gas price environment. Sanchez began looking into strategic alternatives in December.
Sanchez said it had received commitments from senior lenders for $175 million in new financing, with $25 million of that new financing going toward repaying borrowings and replacing an outstanding letter of credit under Sanchez’s existing credit facility.
