Bennu Oil & Gas Files for Chapter 7 Bankruptcy in Texas

http://www.wsj.com/articles/bennu-oil-gas-files-for-chapter-7-bankruptcy-in-texas-1480609594

Bennu Oil & Gas LLC, which was formed to purchase ATP Oil & Gas Corp.’s troubled drilling assets following the Deepwater Horizon oil spill, has filed for chapter 7 bankruptcy protection, indicating its intention to liquidate.
Bennu, whose privately held operations were concentrated off the coast of Louisiana, sought chapter 7 on Wednesday at the U.S. Bankruptcy Court in Houston. The company no longer operates, court papers show.
In chapter 7, a trustee will be appointed to marshal and then sell off the company’s remaining assets, with proceeds eventually distributed to creditors. In court papers, Bennu valued its total assets at $10 million to $50 million and total liabilities at $500 million to $1 billion.
In August, Texas’ Beal Bank USA successfully forced an affiliate of Bennu Oil & Gas, Bennu Titan LLC, into an involuntary chapter 11 bankruptcy and later won a judge’s order appointing an independent trustee to take control of the affiliate. Bennu Titan owns an offshore multicolumn drilling and production platform in the Gulf of Mexico that was being used by Bennu Oil & Gas. The platform has since been shut down.