Linc Energy’s US subsidiaries have filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas in Houston, the company said in an SGX release.
The eleven subsidiary companies filed for bankruptcy on 29 May and are pending joint administration under Judge David R Jones.
Linc Energy’s US operations comprise onshore oil and gas operation in Alaska, Texas, Louisiana and Wyoming. It also owns an underground coal gasification technology that converts unmineable coal into syngas in situ.
In court papers, Linc USA’s Vice President blamed the company’s position on an aggressive drilling programme that it launched in 2012. Despite ending that programme in 2014 and launching cost-cutting measures, the company missed an interest payment last year.
It was ultimately able to make up the missed payments after receiving a capital injection from its parent company. But with Linc Energy launching its own insolvency proceedings in Australia in April, further assistance was cut off and Linc USA missed another US$24 million interest payment on 30 April.
Last month, administrators at Linc Energy said the company should be liquidated. In March, the company was charged with causing serious environmental harm following a gas leak at one of its plants in Queensland.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/cbm/01062016/linc-energy-us-subsidiaries-file-for-bankruptcy-2016-876/