Cobalt International Energy Files Chapter 11 Bankruptcy in Texas

On December 14, 2017, Cobalt International Energy, Inc. (the “Debtor”) and certain of its affiliates[1] (collectively, the “Debtors”) filed chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas.According to the Declaration of David D. Powell, the Debtor’s Chief Financial Officer, the Debtors are independent exploration and production companies operating in the deepwater U.S. Gulf of Mexico and offshore Angola and Gabon in West Africa regions.  The Debtors cite a failed prepetition sale of its Angola assets and the low commodity prices and general market uncertainty as catalysts for filing bankruptcy.According to the Debtor’s bankruptcy petition, it anticipates that funds will be available for distribution to unsecured creditors.  The Debtor lists the number of creditors as between 100-200.  Per the Declaration of David. D. Powell, the Debtors have approximately $2.8 billion in total funded debt.  Further, the Debtor’s list of creditors holding the 30 largest unsecured claims is comprised almost exclusively of trade debts.The Debtors intend to offer for sale all of their assets, either individually or as an entire going concern, and state that they are in discussions with potential buyers.  To that end, the Debtors are seeking court approval of bidding procedures in connection with an anticipated auction.  The Debtors also seek authority to pay all prepetition and post-petition amounts owing on account of working interest expenditures, joint interest billings, royalties, delay rental payments and production sale expenditures.The case is styled In re Cobalt International Energy, Inc., et al. and is case number 17-36709 pending in the United States Bankruptcy Court for the Southern District of Texas.A copy of the Declaration of David D. Powell can be found by clicking here:  Download Cobalt Intl Energy – 1st Day Declaration (2). For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney.For more information on the Thompson & Knight Bankruptcy and Restructuring practice, please click here. [1] Cobalt International Energy GP, LLC; Cobalt International Energy, L.P.; Cobalt GOM LLC; Cobalt GOM #1 LLC; and Cobalt GOM #2 LLC.