Linn Energy LLC warned Tuesday that a chapter 11 bankruptcy filing may be “unavoidable” for the oil and gas producer.
The company said it has hired financial and legal advisers “to address our liquidity and capital structure, including strategic and refinancing alternatives through a private restructuring,” but added that bankruptcy may be its only option.
The warning in the company’s financial statement came alongside an announcement that it would skip $60 million in interest payments on bonds maturing in 2021 and 2022 and would enter a 30-day grace period. If the interest isn’t paid within the grace period, Linn could trigger a default.