Energy Cos. Playing Risky Game With Short-Term Credit Grab

Law360, Wilmington (July 15, 2016, 3:40 PM EDT) -- The glut of energy companies using a borrowing strategy called a defensive draw — maxing out on credit before lenders can cut off access to cash — has taken the lending market by surprise and put exploration and production firms in the driver's seat in bankruptcy court. But experts say it could dramatically tighten the credit market for years to come and may spell long-term danger for the sector.

While the tactic of defensive draws and building up a reservoir of cash to weather a bankruptcy case is not new — a similar strategy was famously used in the runup to...

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!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!