Oil Company, Subsidiary File For Reorganization
OKLAHOMA CITY (AP) _ Seneca Oil Co. and its subsidiary, Seneca Drilling Co., have filed separate petitions in federal court in Oklahoma City seeking reorganization under Chapter 11 of the Federal Bankruptcy Act.
Michael Coffman, a company spokesman, said Monday that Seneca Oil Co. lists total liabilities of $78.6 million, which includes liabilities of $11.7 million claimed by Seneca Drilling. He said Seneca Oil has assets of $19.5 million, which includes $1.5 million for Seneca Drilling.
Coffman said the petitions for reorganization were filed late Friday. Under Chapter 11, a company seeks a federal court order that frees it from the threat of creditors’ lawsuits until a plan can be developed to put the company’s finances back in order.
The filing of the reorganization petitions followed lawsuits brought against the Oklahoma City-based company by six banks and a debt holder. The suits seek judgments against Seneca or its affiliates totaling about $52 million, Coffman said.
Coffman said Seneca’s most recent earnings statement covered a nine-month period ended Sept. 30 and reported a net loss of $5.5 million on revenue of $8.4 million. In the third quarter the company lost $2 million on revenue of $2.2 million.
A statement by Seneca said it will seek to continue operations of its oil and gas properties while under court protection.