Friday, January 23, 2015

Oil Companies Are Looking At 'Outright Liquidations'



he carnage from low oil prices is about to get even uglier.

Conway Mackenzie, the largest restructuring firm in the US, says that oil drillers will begin shutting down as soon as the second quarter, followed closely by explorers, according to Bloomberg's Joe Carroll
The game changed when on Jan. 5 crude broke $50 per barrel for the first time since April 2009, when the economy was in recession. Here's what Conway's John T. Young told Bloomberg:

"When I saw WTI hit $65, I thought we're going to be really busy with restructurings ... When it hit the $40s, I knew we were looking at outright liquidations."




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