Cox Operating LLC, a Metairie, La.-based oil company - one of the largest independent operators still working in state shallow coastal waters - has filed for bankruptcy protection, leaving dozens of south Louisiana service and supply companies facing their own potential bankruptcies.
Cox executives have blamed their problems on the pandemic, OPEC, 2020-21 hurricanes, and an accident that damaged one of its oil platforms.
Bankruptcy court documents show Cox’s estimated liabilities are about 500M, of which $200M+ is owed to small businesses in the Houma, Thibodaux and Acadiana areas.
Court documents indicate Cox followed a troubled path for other companies using debt to acquire large fields of aging wells in shallow Gulf waters.
Those who have made their livelihoods servicing oil and gas companies, like Keystone Chemicals owner Jeff Delahoussaye, say this is particularly worrisome. Delahoussaye's Broussard, La., company is owed $2.8M.
“Some of the smaller companies are going to have to file for bankruptcy. It’s going to have a domino effect.” (NOLA.com 06/12/23) Louisiana oil company Cox Operating files for bankruptcy | Business News | nola.com
No comments:
Post a Comment