Delta Petroleum Corp Files for Bankruptcy Reorganization

Delta Petroleum Corp. has filed for Chapter 11 bankruptcy protection after failing to find a buyer because of troubled assets.

Delta Petroleum’s production is primarily natural gas and has been affected by the decline in gas prices and growing debt. Natural gas prices fell about 15 percent between July and September.

Delta Petroleum spent millions of dollars and 16 months exploring for natural gas about 12 miles outside Bickleton, Colorado. Expense for exploration and plugging unproductive wells cost Delta $420.4 million in the past quarter.

In the filing, Delta listed assets of $375.5 million with liabilities of $310 million.

Delta had attempted to find a buyer, but failed and was forced to file for bankruptcy. The Chapter 11 filing will allow the company to reorganize while it continues operations. This is the filing that a bankruptcy attorney will recommend if the company does not wish to dissolve.

Delta has asked to bankruptcy court judge to allow them to pay employee salaries, wages and benefits, royalty interest owners and vendors. They have enough cash to pay court expenses and continue operations for the short-term.

Bankruptcy lawyers make it possible for troubled businesses to survive in tough economic climates to avoid a complete shutdown. After assessing the magnitude of debt, they will recommend the best type of bankruptcy for the businesses’ needs.

Like a business, a bankruptcy attorney will help an individual reduce or even discharge their debts.