The next phase in the ever evolving COVID-19 and coronavirus crisis are the upcoming bankruptcies. This year was already shaping up to be an interesting year, but the coronavirus rapidly accelerated bankruptcy declarations. One article estimates that approximately 100,000 businesses have permanently closed and another article states that more than 57 million people have filed for unemployment since the crisis began. These numbers are hellacious, and the impact of the crisis is not over.

In the world of oil and gas, there are a lot of companies with debt maturities coming due in 2020 or 2021 (see this article from the Wall Street Journal discussing the $120 billion debt wall these companies will face through 2023), and oil prices have been below the break-even point for many drilling sites. Energy companies have been disproportionally affected by the pandemic and many have filed for bankruptcy. What does this mean for businesses who have yet to file for but are considering filing for bankruptcy?

Read the rest of the post in my article with my colleague, Michael Rubenstein, on The Energy Law Blog.

The information provided in this blog is for educational purposes only and is not legal advice. If you need legal advice, then you should speak with a lawyer about your specific issues. Every legal issue is unique. A lawyer can help you with your situation. Reading the blog, contacting me through the site, emailing me or commenting on a post does not create an attorney-client relationship between any reader and me.

The information provided is my own and does not reflect the opinion of my firm or anyone else.

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