HOUSTON – Cobalt International Energy filed Chapter 11 bankruptcy petitions on Dec. 14, according to a press release on the company’s website.
The petition for Cobalt International Energy Inc. lists assets between $1 billion and $10 billion and liabilities between $1 billion and $10 billion, according to court documents.
Cobalt expects to conduct business as usual and have enough cash on hand to fund its operations during the Chapter 11 process, according to a Dec. 14 press release. The company has filed various first-day motions seeking authorization to use its cash collateral, maintain its existing cash management system and other things.
The Chapter 11 process is intended to help facilitate Cobalt’s restructuring process and the proposed sale of assets, per the release.
“Cobalt has been engaged in constructive discussions with its first lien noteholders, second lien noteholders, unsecured noteholders and their respective advisors regarding the need for, sponsorship of, and terms of a restructuring and proposed sale of Cobalt’s assets,” the press release stated. “Cobalt plans to utilize the Chapter 11 cases to continue and complete these discussions with key stakeholders and evaluate other value-maximizing opportunities to facilitate an expedited restructuring that will deliver maximum value to its stakeholders.”
The bankruptcy filing comes after several months of efforts to reduce debt and avoid delisting from the New York Stock Exchange.