From New York Times:
Yet another oil company has filed for bankruptcy, as the energy industry and its lenders brace for a prolonged slump.
Paragon Offshore, which operates offshore drilling rigs from the Gulf of Mexico to the North Sea, filed for Chapter 11 bankruptcy protection Sunday evening, the latest filing in a painful shakeout buffeting the oil industry.
Over the last 16 months, about 60 oil and gas companies have filed for bankruptcy as commodity prices slide, and that figure is expected to double in the coming months if prices remain low. All told, analysts say as much as a third of the sprawling oil and gas industry in the United States could be consolidated as a result of the downturn.
Paragon, based in Houston, was one of the more fortunate companies that has contemplated bankruptcy. The company was able to negotiate a deal with its lenders — a mix of bondholders and banks — ahead of its bankruptcy filing.
