Risk Trade ATPG .46 -.84 -64% ATP Oil Said to Get
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Risk Trade ATPG .46 -.84 -64% ATP Oil Said to Get Funding Ahead of Possible Bankruptcy
http://www.bloomberg.com/news/2012-08-10/atp-...uptcy.html
ATP Oil Said to Get Funding Ahead of Possible Bankruptcy
By Beth Jinks, Krista Giovacco and Kristen Haunss - Aug 10, 2012
ATP Oil & Gas Corp. (ATPG), the oil explorer whose new chief executive officer quit after less than a week in June, arranged loan financing ahead of a possible bankruptcy filing, said two people with direct knowledge of the matter.
The so-called debtor-in-possession loan of $600 million is being provided by Credit Suisse Group AG (CSGN), said the people, who asked not to be identified as the process is private. A filing may come as soon as today, according to one of the people.
ATP, which faces an $89 million interest payment in November, deteriorated as it missed production targets and stumbled executing marquee offshore oil developments. Founder and CEO Paul Bulmahn hired Matt McCarroll to replace him June 1, making himself executive chairman. McCarroll quit by June 7 after being “unable to reach a mutually agreeable employment agreement,” according to the company.
ATP’s stock had lost 98 percent of its value from its peak at the end of October 2007 through yesterday. The shares fell as much as 27 percent to 95 cents at 1:32 p.m. in New York.
Representatives at ATP didn’t immediately respond to several calls or e-mails seeking comment. A spokesman at Credit Suisse didn’t immediately respond to a call seeking comment.
McCarroll’s departure came after strategic disagreements with Bulmahn, according to two people familiar with the circumstances of his tenure. Houston-based ATP buys and develops natural gas and oil reserves in the Gulf of Mexico and North Sea.
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