On March 8, 2015, Dune Energy, Inc. and certain of its affiliates (collectively, “Dune Energy” or “Company”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Western District of Texas in Austin, Texas. According to its filings, the Company is an independent energy company engaged in the exploration, development, acquisition and exploitation of crude oil and natural gas properties in Texas and Louisiana. According to the first day declaration of the Company’s Chief Restructuring Officer (the “Martin Declaration”), the Company’s capital structure includes a first lien credit facility in principal amount of $37 million of borrowings plus $2 million in letter of credit obligations. The Company also owes approximately $67.8 million in floating rate senior secured notes. The Company has granted liens on substantially all of its assets to secure the first lien credit facility and floating rate senior secured notes. Martin Declaration at 3.The Martin Declaration states that, in July 2014, the Company experienced reductions in its ability to borrow and was notified that it was in default for failing to meet certain debt covenants. Martin Declaration at 10. The company then entered into merger discussions with Eos Petro. Inc. (“Eos”), which culminated with the signing of a merger agreement on September 17, 2014. Dune Energy claims that the merger agreement was terminated on March 4, 2015 and such termination precipitated its bankruptcy filing. Martin Declaration at 4.Download Martin Declaration.For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney. For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.