Oil & Gas companies filing for bankruptcy

With the recent downturn in crude oil prices, major oil and gas companies are going bankruptcy. The latest in this trend is the bankruptcy of Samson Resources that sent shock waves through out the oil and gas industry last week. Nineteen oil and gas companies have fallen into bankruptcy in the past year or so. 

"We are going to see more prepackaged and renegotiated reorganization plans that result in the elimination of the equity and some of the debt, and the conversion of some of the debt [into equity]," Marc Schwartz, a Managing Director at HSSK LLC said. "Bankruptcy will be required to get those recapitalization done."

(credit: Claire Poole)