Extraction Oil & Gas Files for Bankruptcy

Extraction Oil & Gas (NASDAQ: XOG) has filed for Chapter 11 bankruptcy. In doing so, the energy company joins a growing list of its peers that have filed for bankruptcy this year.

Extraction Oil & Gas has already entered into a restructuring support agreement with several of its unsecured noteholders. This plan will enable the company to significantly reduce its outstanding debt via a debt-for-equity swap. As a result, these creditors would control a majority of the company's equity following the restructuring. The company hopes to use the chapter 11 process to complete a comprehensive restructuring that will include other debtholders so that it can quickly exit bankruptcy in a stronger financial position. That outcome could see its creditors taking over full control of Extraction's equity, which would render its current common stock worthless.

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Source Fool.com