BDCs mull bankruptcies in oil patch
Up to one-third of American oil and gas producers could near bankruptcy and restructuring by the middle of next year, according to Wolfe Research, which suggests a rebound in crude to at least $50 per barrel would be necessary for survival.
Oil today is threatening a $29 handle, down 2.9% to $30.58.
A new report from Morgan Stanley says the environment is worse than the major 1986 oil patch bust which last for five years.
Plenty of P-E money is standing on the sidelines, but managers see no need to rush in - instead preferring to wait for bankruptcies and the wiping out of the debt.
“There’s no reason to be anybody’s savior,” says FBR's Chad Mabry. “If you can just get the assets out of bankruptcy, then you don’t have to save anyone.”
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