Independent oil and gas producer Magnum Hunter Resources (MHR), which has stopped paying dividends, is selling assets and has hired advisors to boost its sinking financial position, may be out of options. As part of its quarterly results filing with the U.S. Securities and Exchange Commission, the Irving, Texas-based company warned its only path could be Chapter 11. Like many of its brethren, Magnum Hunter is between the proverbial rock – the demand for capital to conduct its operations – and the hard place – the economic realities of collapsed oil and gas prices. “As of Sept. 30, 2015, the company had $6.5 million in cash and a working capital deficit of $1,037.2 million [$1.04 billion], “the SEC filing states. At Sept. 30, Magnum Hunter was in default under its senior revolving credit facility and second-lien credit agreement. During the first quarter, Magnum Hunter suspended all drilling and said it didn’t expect to resume until its liquidity position has been stabilize
http://www.shaledirectories.com/blog/magnum-hunter-warns-of-potential-bankruptcy-filling/
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