According to inside sources who requested anonymity, ATP Oil & Gas Corporation is bracing for possible bankruptcy by putting its finances in order and negotiating a loan of approximately 600 million U.S. dollars from Credit Suisse Group AG.
Amidst the rumors, speculation and news, ATP's stock has lost an astounding 73% to 36 cents a couple hours before closing time in New York and a staggering loss of 95% since May this year. The company has also been cursed by the sudden resignation of Matt McCarroll, former CEO, who quit after just 6 days of work.
The $600 million loan is intended to keep ATP Oil afloat during the entire process of bankruptcy after it most likely files for bankruptcy protection in the near future.
Founded in 1991, ATP is known for its operations in the Gulf of Mexico and the Mediterranean Sea and also for offshore explorations of plots of areas that may be potentially loaded with an abundance of natural gas.
Following difficulties soon after the catastrophic 2010 BP oil spill in the Gulf of Mexico and the costly maintenance of deep-water projects, ATP was expected by many analysts to run out of money in early 2012.
Currently, the company is facing an $89 million interest payment in less than 3 months.