A Miami Herald news article published on April 1, 2013 reported that GMX Resources Inc. has filed for Chapter 11 bankruptcy protection.
GMX Resources Inc. is an oil and gas production company who was forced to seek financial assistance after natural gas prices hit an extreme low.Â The Oklahoma company included their sister units in the petition, Endeavor Pipeline and Diamond Blue Drilling. In the last year, the company has struggled significantly financially. Once the company was a major player in the oil and gas industry, with its stock being traded for close to $22.00 a share, now the company faces debt collectors with their stock closing at $2.19 a share.
In a press release, the company stated that they attempted several different tactics to help increase their companyâ€™s production and generate revenue. However, their attempts were in vain and the production of oil and gas costs more than the amount the company was making. At this time, the company has been unable to create a solution that would create a long-term solution and stabilize their financial needs.
Under Chapter 11, an assigned trustee will review the companyâ€™s assets and put up for public auction. The funds collected will then go towards paying down the companyâ€™s debt. Some of the assets that will be sold off include the companyâ€™s operating assets and undeveloped land that is owned by the company. Ideally the company hopes to be back on their feet with the help of the bankruptcy protection by 2017.
If you are considering bankruptcy, then contact the law office of Jayson Lutzky. Mr. Lutzky has 30 years of experience practicing law. To set up a free in-person consultation, call 800-660-5299. You may also visit our website www.MyNewYorkCityLawyer.com for more information.