Sabine Contract Ruling May Spur More Driller Bankruptcies
Law360, New York (March 9, 2016, 5:31 PM EST) -- A bankruptcy judge's ruling that Sabine Oil & Gas Corp. can ditch midstream contracts because they didn't relate to the company's drilling operations will encourage more cash-strapped producers to file for bankruptcy in order to shed unfavorable deals and ratchet up the financial risks for pipeline companies and other midstream firms, experts say.
U.S. Bankruptcy Judge Shelley C. Chapman said Tuesday that Sabine could reject three covenants for gas and condensate gathering services with Nordheim Eagle Ford Gathering LLC and HPIP Gonzales Holdings LLC, saying the company exercised reasonable business judgment and the companies presented no evidence in challenging that judgment....
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!