BPZ Resources Inc. is not the first oil company to file for bankruptcy, just the most recent. The company was supposed to pay around $60 million to bondholders in early March, but they neglected to make that payment. This warning sign proved to point to larger issues as the company put in a filing for Chapter 11 bankruptcy.
Oil company files for Chapter 11 bankruptcy
Company pursues Chapter 7 liquidation
Companies face challenges making ends meet for a variety of reasons. For some, it may be malfeasance or insufficient ability on the part of those running the company. For others, it may be a changing marketplace that the company's way of doing business is no longer enough for, such as has been the case with some brick-and-mortar stores since online shopping became ubiquitous. When challenges arise, for whatever reasons, companies need to decide what to do.
