Gulfport Energy (NASDAQ:GPOR) may be approaching bankruptcy if recent reports are to be believed.
Here’s what investors in GPOR stock need to know about a possible Gulfport Energy bankruptcy.
- A report from Kallanish Energy claims that the company will file for bankruptcy in the company days.
- According to this report, the company plans to restructure its debt under bankruptcy protection.
- That would allow it to better manage the $2 billion of debt that it currently has.
- The report claims that Gulfport Energy plans to file its bankruptcy in Houston, Texas.
- Talk of a possible bankruptcy for GPOR comes after it deferred payment on some of its senior notes.
- A filing with the U.S. Securities and Exchange Commission (SEC) on Friday revealed as much.
- This is for senior notes due in 2024 that had interest payments due on Thursday.
- The company decided to enter into a 30-day grace period rather than pay the interest on the notes.
- In that filing, the company says that it’s in talks with lenders about a possible financial restructuring.
- In that same SEC filing, the company reveals that its borrowing base under its credit agreement dropped.
- The company now has $580 million it can borrow instead of the previous $700 million.
- All of these signs point to financial trouble for the Oklahoma-based shale company.
- GPOR investors will want to keep an eye out for any further bankruptcy news over the next few days.
GPOR stock was up 4.4% as of Wednesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.