Lonestar Files for Chapter 11 Bankruptcy

Independent oil and gas company Lonestar Resources Inc. (LONE) announced having filed for chapter 11 bankruptcy protection in the United States bankruptcy court for the southern district of Texas on 30 September.

Mid-September the company had announced a restructuring support agreement with its largest shareholders which would see the company eliminate debt obligation and preferred equity interest worth $390 million.

This filing makes Lonestar the largest oil and gas company to file for bankruptcy due to financial distress caused by the pandemic.

According to the filling, Lonestar has assets and liabilities totaling up to $500 million and $1 billion respectively.

This bankruptcy filing comes yet after another U.S based Energy Company Oasis Petroleum Inc. (OAS) filed for chapter 11 bankruptcy the same day.

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