Denver, Colorado-based independent oil and gas producer Escalera Resources last week filed a petition in the U.S. Bankruptcy Court seeking relief from creditors under provisions of Chapter 11 of the United States Code.
The Company believes the Chapter 11 process will provide the greatest flexibility to pursue viable options for asset sales or other alternatives with the goal of maximizing the value of the Company.
Escalera will continue to operate the business as debtors-in-possession under the jurisdiction of the court. In connection with the bankruptcy process, The company said it has an agreement regarding the use of cash collateral.
