American natural gas producer files for bankruptcy

One of the largest natural gas producers in the United States – Gulfport Energy Corp. – has declared bankruptcy and intends to restructure the business following Article 11 of the US Bankruptcy Code, Interfax-Ukraine reports.

The restructuring plan, which will allow Gulfport to reduce debt by $1.25 billion, has received the support of the vast majority of the company's creditors.

The company will receive a $262.5 million loan from its lenders, which will cover operating expenses during the restructuring period.

Gulfport Chief Financial Officer Quentin Hicks said the persistence of low gas prices for a long time and the crisis caused by the Covid-19 led the company to bankruptcy. A few weeks ago, Gulfport missed the due date for the next interest payment on bonds maturing in 2024.

As part of the restructuring, the company will issue new bonds of $550 million.

Gulfport shares fell 46.5% in Monday trading. Since the beginning of this year, their value has fallen by 96%.

Azerbaijan is ready for commercial gas supplies to Europe via the TAP gas pipeline.

Earlier it was reported that the US authorities had prepared new sanctions against Nord Stream 2.

Tags: gas, USA, debt, price, natural gas, COVID-19, crisis, economy, supplier

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