header image

[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Sunny
Sunny
77°F
 
Calendar
Today in
S.C.V. History
October 3
1918 - Box-office superstar William S. Hart promotes 4th series of Liberty Loan (World War I) bonds, which went on sale Sept. 28 [story]
William S. Hart


As expected, Houston-based LINN Energy LLC, along with affiliate LinnCo and their subsidiary Berry Petroleum Co., filed for Chapter 11 bankruptcy protection this week.

One of the 20 largest U.S. oil and gas producers, the companies carry $9.3 billion in debt. While oil prices have rebounded somewhat from year-ago levels, the increase has been too little, too late for the LINN companies, which suffered through two years of depressed oil prices.

Collectively, the companies produce about 59,000 barrels of oil and 607 million cubic feet of gas per day.

Localized numbers are hard to come by, but somewhere in excess of 2,000 daily barrels of oil flow from the Placerita field, which LINN owns through its subsidiary Berry Petroleum. The Placerita field is the oil drilling operation off of Sierra Highway in Newhall between Placerita Canyon and Golden Valley roads.

In its filing, LINN said it had struck a restructuring deal with at least two-thirds of its primary creditors – the holders of at least two-thirds of the outstanding principal under LINN’s major credit facility.

“We believe the (deal with creditors) reflects the confidence of our first lien lenders in the quality of our assets and represents an important step forward for the company,” CEO Mark E. Ellis said in a statement. “We believe that these steps will provide us the financial flexibility to successfully manage in the current commodity price environment and, when combined with constructive agreements with our remaining creditors and potential third party financing, will provide a platform for future growth.”

But fearing they’d be left holding an empty bag, Berry’s separate unsecured creditors signaled their intent to wrestle control of the subsidiary.

berrypetroleum0213aBerry’s and LINN’s debts and assets were never fully integrated. Their books have been separate since their merger just two years ago. (Berry owned the Placerita oilfield prior to the merger.)

Bloomberg reports that a group of Berry creditors who hold about two-thirds of Berry’s $834 million in unsecured debt will try to work out a consensual reorganization plan. According to Bloomberg, the group intends to unravel the merger and make Berry its own separate company again.

On Friday, LINN, LinnCo and Berry announced that the U.S. Bankruptcy Court for the Southern District of Texas approved their request to continue day-to-day operations.

“The approved motions give the company the authority to, among other things, continue to pay employee wages and benefits without interruption, to utilize its current cash management system, and to make royalty payments,” they said.

“The company anticipates that the cash available to it during its Chapter 11 Cases will likely provide sufficient liquidity to support the business during the financial restructuring process. For goods and services provided post-Chapter 11 filing, the company intends to pay vendors in full under normal terms.”

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Latest Additions to SCVNews.com
The city of Santa Clarita Parks, Recreation and Community Services Commission will hold its regular meeting Thursday, Oct. 6, at 6 p.m.
Oct. 6: Parks, Recreation Commission Regular Meeting
The Santa Clarita Valley Sheriff’s Station, with the help of Los Angeles County Sheriff's Department Tactics and Survival unit, LASD Special Enforcement Bureau, and the Los Angeles County Fire Department, will be taking part in active shooter training Monday at Valencia High School.
SCV Sheriff’s Station Announces Active Shooter Drill at Valencia High School
One of the most anticipated events of the year is coming to the Canyon Country Community Center on Oct. 27.
Santa Clarita Mayor’s Monthly Message – October 2022
1918 - Box-office superstar William S. Hart promotes 4th series of Liberty Loan (World War I) bonds, which went on sale Sept. 28 [story]
William S. Hart
1945 - Cattle-rustling "Phantom of Vasquez Rocks" captured [story]
Phantom suspect
1842 - Proof of discovery: New York Observer (newspaper) reports on gold in Placerita Canyon. [story]
New York Observer
Sixteen William S. Hart Union High School District 2022/23 Teachers of the Year were recognized by the Governing Board on Wednesday, Sept. 28.
Hart District Teachers of the Year Honored by Board
The Los Angeles County Department of Public Health confirmed six new deaths throughout L.A. County, 1,682 new cases countywide and 100 new cases in the Santa Clarita Valley.
Friday COVID Roundup: Seven Day Average of County Case Counts Declines 8 Percent
The HOV, High Occupancy Vehicle, or carpool, lanes are open on I-5 in both directions between Magnolia Boulevard and Buena Vista Street.
I-5 Corridor Improvement Work Continues, SR-134  to Buena Vista Street
Two recent graduates of CalArts’ MFA Experimental Animation Program, Moon (Yuezhu) Wang and Dairys Escoto De León, have been selected for the 2022-23 Association for Independent Colleges of Art and Design Post-Graduate Teaching Fellowships.
CalArts Alums Selected for AICAD Teaching Fellowships
Join Route 66 Classic Grill for the longest monthly Classic Car Show in Southern California history. The last show of 2022 will be held Oct. 8 from 5 p.m. to 9:30 p.m.
Oct. 8: Route 66 Classic Grill Classic Car Show
Los Angeles County’s new Veteran Suicide Review Team met for the first time Thursday, Sept. 29, kick-starting an innovative and collaborative approach to reducing veteran suicide in the county.
L.A. County’s New Veteran Suicide Review Team Begins Work
Agua Dulce Winery will host StompFest on Saturday, Oct. 1 at noon.
Oct. 1: StompFest at Agua Dulce Winery
Do you want to create a post on Facebook and Instagram at the same time? Learn to schedule posts, respond to comments and inbox messages from one place by attending this free Small Business Development Center webinar, "Manage Your Social Media Platform, Meta Business Suite."
Oct. 5: SBDC Free Webinar Helps Businesses Manage Social Media Platforms
On Saturday, November 12, 2022, the Santa Clarita Veteran Services Collaborative and Curtiss-Wright Defense Solutions will host a Veteran Career Fair on Saturday, Nov. 12 at the Curtiss-Wright facility.
Nov. 12: Veteran Career Fair at Curtiss-Wright in Valencia
A strong first half turned into a great start of the second half, but it ended going against Master's men's soccer team as they lost the Golden State Athletic Conference opener to Arizona Christian 3-1 Thursday in Glendale, Ariz.
GSAC Opening Win Eludes TMU Men’s Soccer
Motoko Shimoji earned medalist honors for the third straight week and Carla Menendez placed runner-up to help lead the College of the Canyons Golf Team to a 15-stroke victory over Bakersfield College at the Western State Conference event hosted by Moorpark College at Los Robles Greens on Sept. 26.
Cougars Win Again, Shimoji Medals for Third Straight Week
1955 - Actor James Dean, 24, drives through Castaic Junction en route to his final resting place [watch]
James Dean
Chelsea A. Kay, 37, an insurance operations manager living in Saugus, was honored by JCI USA (United States Junior Chamber) as a member of the 2022 class Ten Outstanding Young Americans.
United States Junior Chamber Honors Local Operations Manager
October is fast approaching. To help embrace the haunted season, we are happy to announce the return of the Santa Clarita Valley Sheriff’s Station Haunted Jailhouse after a two year hiatus.
SCV Sheriff’s Station Haunted Jailhouse Returns After Two Years
The Los Angeles County Department of Animal Care and Control would like to remind residents within unincorporated county areas and participating contracted cities that the pet license amnesty period is almost over.
County Reminding Residents Pet License Amnesty Period Ending Soon
Four individuals and one writing team have been selected as winners of the 2022 Academy Nicholl Fellowships in Screenwriting.
Academy Announces Winners of Nicholl Screenwriting Fellowships
We began our Equity, Diversity, Inclusion and Anti-Racism (EDIA) journey nearly two years ago, and while the path ahead was not clearly defined, Health Services leadership was enthusiastically joined by workforce members across our health enterprise in a united commitment to creating a more welcoming, inclusive and proactively anti-racist health care system for our patients, staff and the communities we serve.
Message from County Health Services Director Dr. Christina Ghaly
College of the Canyons student-athletes Brianna Botello (women's volleyball) and Sam Regez (men's cross coutry) have been named the COC Athletic Department's Women's & Men's Student-Athletes of the Week for the period running Sept. 19-24.
COC Names Botello, Regez Athletes of the Week
SCVNews.com
%d bloggers like this: