GMX RESOURCES - CASE STUDY
Industry: Oil and Gas Exploration and Production
Transaction Type: Chapter 11 Reorganization
COMPANY DESCRIPTION
GMX Resources Inc. is an independent oil and natural gas exploration and production company with a portfolio of leasehold acreage in multiple resource plays.
SITUATION OVERVIEW
In light of the global recession, GMXR filed for Chapter 11 bankruptcy in the Western District of Oklahoma in April 2013.
EMERALD SOLUTION
In connection with the chapter 11 filing, Emerald is currently retained as Trustee to the Liquidation Trust, focusing on the following action items:
- Liquidating the significant assets left over from the Company
- Resolving over $1.3 billion in claims
- Pursuing contingent assets on behalf of the creditors, such as D&O and preference claims
TRANSACTION RESULTS
As a result of Emerald’s involvement, the following outcomes were successfully achieved, including:
- The claims pool was reduced by tens of millions of dollars.
- Emerald continues to liquidate the remaining GMX assets and make distributions from the Trust for the benefit of the Company’s creditors.
