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Print articleDueling Liens in Lean Times
March, 2016 - Kim Mai , Bernard "Buddy" F. Clark, Jr. , Kraig Grahmann
With the steep collapse of oil and gas prices in the last
eighteen months, dozens of exploration and production companies have declared
bankruptcy and many more companies are expected to file for bankruptcy
protection unless prices rebound dramatically. As the prospect of further
bankruptcies looms, it is important for parties to understand how to adequately
protect their security interests and the nature of competing liens that could
prevent them from fully realizing on the value of the collateral securing their
counterparty’s obligations. This article sets forth types of liens that can
encumber the assets of an exploration and production company and the priority
of such liens.
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