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Energy XXI CEO John Schiller. Image courtesy of Energy XXI.

Energy XXI Ltd. may be seeking bankruptcy protection after reporting a $1.31 billion net loss for the second quarter of 2016.

According to Reuters, the company may be looking to file for Chapter 11 protection as early as next week if it can’t refinance its debt.

“Absent a material improvement in oil and gas prices or a refinancing or some restructuring of our debt obligations or other improvement in liquidity, we may seek bankruptcy protection to continue our efforts to restructure our business and capital structure,” the Houston-based company said in the filing.

Energy XXI had about $4 billion in liabilities as of December 31, a figure that would make the company’s bankruptcy filing the second-largest energy firm bankruptcy since oil prices began falling in July 2014, Reuters said.

The company said in the filing that it’s evaluating various alternatives with respect to its revolving credit facility, but added “there is no certainty that we will be able to implement any alternatives or otherwise resolve our covenant issues.”

Energy XXI added in the filing that it may have to liquidate its assets and “may receive less than the value at which those assets are carried on our consolidated financial statements.”

The company missed an $8.8 million senior notes interest payment on February 16 and has been trying to secure a restructuring deal with its debt holders before a 30 day grace period ends on March 17, according to the filing.

Energy XXI suspended its quarterly dividend on February 26 citing the “current commodity price environment and the need to preserve liquidity.”

Just three days later, the company was notified by the Listing Qualifications Department of the Nasdaq Stock Market that its common stock did not meet the minimum bid price of $1.00 per share required by Nasdaq rules.

The notice has no immediate effect on the listing or trading of the company’s common stock and it will continue to trade on the NASDAQ Global Select Market under the symbol “EXXI.”

Energy XXI has an automatic grace period that ends on August 22 to achieve compliance with the minimum bid price requirement.

The company reported an adjusted EBITDA of $50.1 million on revenue of $184.6 million its fiscal 2016 second quarter that ended on December 31, down from an adjusted EBITDA of $244.2 million on revenue of $503.0 million in the year-ago quarter.

Net loss attributable to common shareholders in the 2016 fiscal second quarter totaled $1.31 billion, or $13.81 per diluted share, compared with a fiscal 2015 second quarter net loss attributable to common shareholders of $278.8 million, or $2.97 per diluted share.

Net loss attributable to common shareholders in the 2016 fiscal second quarter included a non-cash impairment charge on the company’s oil and gas assets of $1.43 billion, or $15.00 per diluted share, “primarily due to sustained lower commodity prices.”