Distressed Debt Investing in the Oil and Gas Industry: Opportunities and Challenges
In June 2014, the price of oil dropped sharply from more than $100 to around $50 per barrel, and since then have remained at record lows. The oil pricing environment poses serious challenges, including business and legal issues unique to exploration and production (E&P) companies. This economic trend have led to multiple company bankruptcies, and has impacted a wide range of services and industries.
While E&P companies continue to struggle with the decline in oil prices, distressed investors have turned this situation into an opportunity to invest in the oil and gas sector. A wide range of financial players, including private equity firms, have showed renewed interest to participate in the sector. However, investors should be aware of the underlying benefits and risks of distressed investing in the E&P space. Investors need to approach deal activities with caution that must go into diligence and structure.
In a two-hour LIVE Webcast, a panel of thought leaders and practitioners assembled by The Knowledge Group will discuss the significant issues surrounding Distressed Debt Investing in the Oil and Gas Industry. They will provide insights on the challenges and opportunities arising from depressed oil and gas prices. Speakers will also offer suggestions on how to overcome these challenges and capitalize on these opportunities.
Key issues that will be covered in this course are:
- Bankruptcy Basics
- Unique Challenges in Oil & Gas Industry
- Distressed Investing Opportunities
- Investment Strategies
- Benefits and Risks in Distressed Investing
Kyle Owusu, Distressed Debt Analyst
Reorg Research, Inc.
- Focus on the capital markets
- How capital markets are increasingly accommodative
- The market's increased focus on the lower part of E&P capital structures.
- The ongoing October base borrowing determinations
- Onshore servicer consolidation; offshore servicer recovery lag.
Timothy C. Bennett, Senior Counsel
Seyfarth Shaw LLP
- Claims/Loan Trading Generally and in the Oil and Gas Sector
- Who are the Market Participants?
- Motivations for Selling and Buying Claims/Loans Generally and in the Oil and Gas Sector
- Structuring a Transaction
- Risks Associated with Trading Claims/Loans Generally and in the Oil and Gas Sector
- Documenting a Transaction (LSTA/LMA/bespoke)
Ryan Wagner, Attorney
Greenberg Traurig, LLP
- Bankruptcies securitizations
- Various state laws on royalty interest
- Under 365 of bankruptcy code
- Contract rejection issues
Cathrine Castaldi, Partner
Brown Rudnick LLP
- Oil and gas interests as property of the bankruptcy estate.
- Conveyances of certain oil and gas interests unexpired leases or executory contracts?
- Production payments as grants of property or disguised financings?
- Does Section 365 of the code mean that the trustee is free to accept or reject an oil, gas, and mineral lease?
- Can an operator withhold proceeds attributable to the interest of a bankrupt non-operator who has failed to pay his share of operating expenses?
- Securitizing oil and gas interests.
Who Should Attend:
- Bankruptcy Lawyers/Practitioners
- Oil and Gas Investors
- E&P Companies
- Directors and Executives from Energy Sectors
- Legal Advisers
- Financial Advisers and Officers
- Credit Facility Lenders
- Legal Counsel
Timothy C. Bennett is senior counsel in the Corporate Department of Seyfarth Shaw LLP and is responsible for managing all aspects of a broad range of global client transactions, focusing on the distressed, illiquid and special situations markets, for clients ranging from boutique brokerages and hedge funds to global investment funds and the trading desks of international banks. His recent representative transactions include the acquisition and sale (including by way of auction) of bankruptcy claims, terminated derivative contracts, loan portfolios, restricted stock, interests in liquidating funds, structured settlements, and LSTA and LMA trades for bank debt of domestic and foreign borrowers. He has experience drafting and negotiating bespoke forms of agreement and structuring creative settlement solutions for clients to efficiently close deals and maximize profit while minimizing risk. He regularly analyzes credit agreements, indentures and related documentation, bankruptcy case filings, ISDA agreements, and corporate filings, all in furtherance of advising clients in the development and implementation of their trading and investment strategies. Mr. Bennett also represents financial institutions active in litigation funding, receivables financing and claim put transactions. Additionally, Mr. Bennett has experience in general corporate and finance matters, including corporate governance, M&A, securities law, and fund formation.
Timothy C. Bennett is senior counsel in the Corporate Department of Seyfarth Shaw LLP and is responsible for managing all …
Ryan A. Wagner is an associate in Greenberg Traurig’s Business Reorganization & Financial Restructuring Practice. Ryan focuses his practice on Chapter 11 bankruptcy reorganizations, restructurings, workouts, distressed M&A, corporate and energy reorganizations and liquidations, distressed debt transactions, and other financial transactions. He represents companies, debtors, plan proponents, lenders, secured and unsecured creditors, and bondholders in connection with all facets of such transactions and proceedings.
Ryan A. Wagner is an associate in Greenberg Traurig’s Business Reorganization & Financial Restructuring Practice. Ryan focuses his practice on …
Cathrine Castaldi is a partner in Brown Rudnick’s Bankruptcy & Corporate Restructuring group in California. Cathrine concentrates her practice in the areas of bankruptcy, insolvency, reorganization and commercial litigation. She has represented Chapter 11 debtors, equity security holders, secured and unsecured creditors, trustees and committees in connection with bankruptcy cases, foreclosure actions, adversary proceedings and related commercial litigation. Her experience in Chapter 11 cases involves representation of debtors from the inception of the case to matters involving plan confirmation and related issues, DIP financing arrangements, cash collateral disputes, valuation issues and litigation. Cathrine also represents individuals and middle market businesses in litigation matters incident to bankruptcy or out-of-court restructuring, including fraudulent conveyance and preference litigation.
Cathrine Castaldi is a partner in Brown Rudnick’s Bankruptcy & Corporate Restructuring group in California. Cathrine concentrates her practice in …
Kyle Owusu is a Distressed Debt Analyst at Reorg Research. Prior to joining Reorg Research, Kyle was a research analyst focused on merger arbitrage, long/short, high yield, and special situations at Loeb King Capital Management. He has an A.B. from Dartmouth College and graduated from Brooklyn Law School.
Kyle Owusu is a Distressed Debt Analyst at Reorg Research. Prior to joining Reorg Research, Kyle was a research analyst …
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Method of Presentation:
NASBA Field of Study:
Finance - Technical
NY Category of CLE Credit:
Areas of Professional Practice
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About Seyfarth Shaw LLP
Seyfarth Shaw has more than 850 attorneys and provides a broad range of legal services in the areas of labor and employment, employee benefits, litigation, corporate and real estate. With offices in Atlanta, Boston, Chicago, Houston, London, Los Angeles, Melbourne, New York, Sacramento, San Francisco, Shanghai, Sydney and Washington, D.C., Seyfarth’s clients include over 300 of the Fortune 500 companies and reflect virtually every industry and segment of the economy. A recognized leader in delivering value and innovation for legal services, Seyfarth’s acclaimed SeyfarthLean® client service model has earned numerous accolades from a variety of highly respected third parties, including industry associations, consulting firms and media.
About Greenberg Traurig, LLP
Greenberg Traurig, LLP is an international law firm with approximately 2,000 attorneys serving clients from 38 offices in the United States, Latin America, Europe, the Middle East, and Asia. The firm offers an integrated, multidisciplinary team of attorneys with experience representing energy companies, utilities, energy project developers, investors, regulators, lenders, governments, and other energy industry participants in navigating periods of market stress. With deep experience across energy, tax, finance, securities, bankruptcy, and litigation, their team efficiently solves complex problems affecting energy industry participants. The firm’s integrated approach assists clients in addressing virtually all aspects of restructuring in the energy sector.
About Brown Rudnick LLP
Brown Rudnick, an international law firm with offices in the United States and Europe, represents clients from around the world in high-stakes litigation, international arbitration and complex business transactions. Clients include public and private corporations, multinational Fortune 100 businesses and start-up enterprises. The Firm also represents investors, as well as official and ad hoc creditors’ committees in today’s largest corporate restructurings, both domestically and abroad. Founded more than 60 years ago, Brown Rudnick has over 230 lawyers providing advice and services across key areas of the law. Beyond the United States, the Firm regularly serves clients in Europe, the Middle East, North Africa, the Caribbean and Latin America. With its Brown Rudnick Center for the Public Interest, the Firm has created an innovative model combining its pro bono, charitable giving and community volunteer efforts.
About Reorg Research, Inc.
Reorg Research has quickly grown to become an industry-leading provider of real-time news, commentary and analysis on issues affecting the distressed debt, event-driven and leveraged finance markets. Our mission is to provide independent, insightful and timely market intelligence and analysis to our subscribers so they can make better business and investment decisions.
We provide real-time access to financial information that drives investment decisions and market perspectives. From there, we built a dedicated editorial team of journalists, former lawyers and investment bankers to leverage our proprietary technology to provide a comprehensive view of the situations that our subscribers care about.