Prior company: “Rooster Energy Ltd. is a Houston, Texas, based independent oil and natural gas exploration & production company focused on the development of resources in the shallow waters of the Gulf of Mexico and the delivery of well intervention services, including well plugging and abandonment”.
IVQ 2017: Rooster Energy was restructured and became the Company, shedding all debt.
BDC Credit Reporter View
This debt for equity swap, where Rooster Energy became the Company, is still under-performing with the only exposure – held by GARS – remaining being an equity stake which has been written down by 34% as of IIIQ 2018. No great expectations for anything but an eventual write-off, especially with oil prices moving down.
IIQ 2018 GARS CC: “Rooster was previously removed from the nonaccrual list after the conversion of senior debt to equity upon emergence from bankruptcy in February 2018. The company currently operates on a debt-free basis and generates cash flow from the production of oil and gas as well as provides decommissioning services in the Gulf of Mexico. Since emergence from bankruptcy, opportunities in the Gulf of Mexico have waned. The current market reflects the challenges ahead in this market as the outlook for their decommissioning services is expected to decline over the next few years”.
IVQ 2017: Rooster Energy debt converted to equity in Company.