GMX files for Chapter 11 bankruptcy protection

AP News
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Posted: Apr 01, 2013 12:02 PM

NEW YORK (AP) — Oil and gas producer GMX Resources Inc. says it filed for Chapter 11 bankruptcy protection, citing low prices for natural gas.

The Oklahoma City company filed in the Western District of Oklahoma. GMX is seeking bankruptcy protection while it reorganizes its business, and the filing includes its Endeavor Pipeline and Diamond Blue Drilling units. It does not include Endeavor Gathering LLC, a business in which GMX holds a 60-percent interest.

GMX says it pursued several strategies to increase oil production, make its supply chain and production more efficient, and reduce costs. However the price of natural gas has remained low and the company's oil and gas businesses require more spending.