Bloomberg Law
December 21, 2020, 11:00 AM UTC

Energy Companies’ ‘Chapter 22' Bankruptcies Mar Investor Returns

Alex Wolf
Alex Wolf
Reporter

North American oil and gas companies returning to bankruptcy court with “Chapter 22" cases are leaving investors with fewer options and less value to extract.

A sustained, multi-year price depression and the Covid-19 pandemic are fueling a wave of fresh filings, including those deemed Chapter 22 because they involve two Chapter 11 cases within a short period of time. And indications are that the repeat bankruptcies are taking their toll on companies that didn’t sufficiently restructure the first time.

In energy companies’ second case, “there’s no longer a pie to reorganize,” Judge David Jones of the U.S. Bankruptcy Court for ...

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