Quicksilver Resources Inc. (OTC: KWKA) filed a Chapter 11 bankruptcy protection petition in the United States Bankruptcy Court for the District of Delaware, the company said March 17. Several subsidiaries also filed petitions, Quicksilver added, noting that none of the Canadian subsidiaries were included.
The company filed petitions in order to restructure itself for its stakeholders, said CEO Glenn Darden, because asset sales and other options did not fully suit the company's current fiscal issues.
Operations in the U.S. and Canada will not be interrupted due to the filings, Quicksilver said, and motions were filed with the court to ensure their continuation.
Fort Worth, Texas-based Quicksilver asked for authority to honor various oil and gas lease obligations.
Quicksilver’s legal advisers are Akin Gump Strauss Hauer & Feld LLP in the U.S. and Bennett Jones in Canada. Houlihan Lokey Capital Inc. is Quicksilver’s financial adviser.
The subsidiaries that filed included:
-- Barnett Shale Operating LLC
-- Cowtown Drilling Inc.
-- Cowtown Gas Processing LP
--Cowtown Pipeline Funding Inc.
--Cowtown Pipeline LP
--Cowtown Pipeline Management Inc.
--Makarios Resources International Holdings LLC
--Makarios Resources International Inc.
--QPP Holdings LLC
--QPP Parent LLC
--Quicksilver Production Partners GP LLC
--Quicksilver Production Partners LP
--Silver Stream Pipeline Company LLC
Quicksilver Resources Canada Inc. reached an agreement with its first-lien secured lenders regarding a forbearance for any default that might arise. The forbearance will run until June 16.
A toll-free restructuring information hotline is available at 877-940-2410, and court documents and other information is available at www.gardencitygroup.com/cases/kwk.
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