All Things Energy

[Pro-Life]

These Energy Companies Are Most At Risk From The "Spring Redetermination"
Submitted by Tyler Durden on 03/28/2016 21:48 -0400

http://www.zerohedge.com/news/2016-03-28/these-energy-companies-are-most-risk-spring-borrowing-base-redetermination

Finally, courtesy of Haynes and Boone, here is a less impartial perspective thanks to a poll of banks, PE firms, and oil service companies who were asked to share their thoughts on the upcoming spring redetermination. Among the key findings:

- Overall respondents expect 79% of the borrowers to see a decrease in their borrowing base in spring 2016
- Overall respondents, on average, expect to see borrowing bases to decrease by 38% compared to what they were in fall 2015
- As to the most likely path to be taken by lenders and borrowers who face a borrowing base deficiency this spring: 36% of respondents said the would negotiate an amendment or extension with the lender; 31% said they would sell non-core assets; 15% said they would seek capital from a hedge fund or private equity fund; 4% said sell the company; 13% said restructure or declare bankruptcy

See charts and more including a slide show at the link above...