Bellatrix Exploration Ltd (Canada) BXEFF

Bellatrix files for bankruptcy protection

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Bellatrix Exploration, an energy producer once worth nearly $2-billion, has filed for court protection as it seeks a buyer or new investor against a backdrop of depressed natural-gas prices. The Globe's Jeffrey Jones writes that Bellatrix is seeking protection from creditors to provide stability while it considers strategic alternatives, which could include a sale, refinancing or recapitalization. The company completed a financial restructuring four months ago, but its shares have tumbled 81 per cent since then, putting its market capitalization at $15.5-million; at last count, its debt was $357-million. Bellatrix is one of numerous Canadian energy companies struggling with commodity prices at a fraction of those in the U.S. markets, high debt and environmental liabilities as well as uninterest among investors. Recent moves by the Alberta government, including $23-million in tax breaks, have so far failed to lift their fortunes. A lack of access to capital has been a major problem for the oil patch. Semi-annual borrowing base reviews, in which lenders recalculate companies' capacity for credit, are about to begin and financing is expected to get even tighter.