The Great American Shale Oil & Gas Bust: Fracking Gushes Bankruptcies, Defaulted Debt, and Worthless Shares | Wolf Street

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The banks, which generally had the best collateral, took the smallest losses; bondholders took bigger losses, with unsecured bondholders taking the biggest losses. Some of them lost most of their investment; others got high-and-tight haircuts; others held debt that was converted to equity in the restructured companies, some of which soon became worthless again when the company filed for bankruptcy a second time. The old shareholders took the biggest losses.

2 thoughts on “The Great American Shale Oil & Gas Bust: Fracking Gushes Bankruptcies, Defaulted Debt, and Worthless Shares | Wolf Street”

  2. Indeed, Sha’Tara. Here in Taranaki, we’ve been really happy to see many foreign petroleum countries pull out and end their fracking operations. We have one, Tamarind, currently in bankruptcy. The only downside is we (New Zealand) taxpayers will be left with the responsibility of cleaning up the mess they left behind – cleaning up their old fracking wells which have a nasty tendency to leak over time.

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