Energy Slump May Force Drilling Cos. Into Bankruptcy

Law360, New York (March 19, 2009, 12:00 AM EDT) -- Oil and gas exploration companies Crusader Energy Group Inc. and Energy Partners Ltd. have warned investors that they are short on cash and overdrawn on certain credit accounts and may be forced to file for bankruptcy protection as they continue to suffer amid reduced consumer demand and the past year’s sudden drop in energy prices.

In filings on Tuesday and Wednesday with the U.S. Securities and Exchange Commission, Oklahoma City-based Crusader Energy and New Orleans-based Energy Parters both said they were working to restructure or otherwise...
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