In the News

Deborah Williamson Talks to San Antonio Business Journal About Potential Oil & Gas Bankruptcies Due to COVID-19 and an International Dispute

March 12, 2020

Deborah D. Williamson, San Antonio-based member and Leader of Dykema’s Bankruptcy Practice Group, was quoted in the San Antonio Business Journal story, “There will be bankruptcies: Oil and gas faces test in South Texas.”

The article highlights that layoffs and bankruptcies are expected in South Texas as a price plunge takes its toll due in part to both the coronavirus outbreak and a Saudi-Russian oil dispute that sent U.S. crude prices plummeting. Williamson says that while some big companies may go under, midsize companies may be fine for the time being as lenders wait out what they hope is a temporary decline.

She goes on to point out that when companies enter bankruptcy in a weak market, their buyer community is smaller, their valuation is much more closely scrutinized, and the deals they are able to strike with creditors are worse for lenders than they would be under better market conditions.

Subscribers to the San Antonio Business Journal can read the entire article here.