American Eagle Energy filed for Chapter 11 bankruptcy protection in Colorado on Friday along with its wholly owned subsidiary AMZG.
The Colorado-based company will continue to operate the business as debtors-in-possession under the jurisdiction of the bankruptcy court.
American Eagle said it has filed a series of motions with the bankruptcy court requesting authority to continue normal operations, including requesting court authority to continue paying employee wages and salaries and providing employee benefits without interruption.
“We believe the Chapter 11 process will provide flexibility for American Eagle to pursue viable options for asset sales or other alternatives with the goal of maximizing the value of the enterprise for our stakeholders,” CEO and president Brad Colby said.
As of December American Eagle had $175 million in total outstanding debt comprised solely of bonds it sold in August 2014 and 30.4 million shares of common stock outstanding.
The company estimates that as of the end of February it had about $9 million of negative working capital and $19 million in cash.
In court papers American Eagle reported about $212 million worth of assets, Reuters said.
The company reported $14.5 million in oil and gas sales during the fourth quarter of 2014, a 15 percent drop from the previous quarter, and booked an adjusted EBITDA of $7.9 million, a 13 percent decline from the third quarter.