Low oil prices have added two more victims today in two separate industries today.
- Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ: QTWW) filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Central District of California. Quantum Fuel Systems was spun-off from IMPCO Technologies in 2002. The company is a leader in the innovation, development and production of natural gas fuel storage systems and the integration of vehicle system technologies including engine and vehicle control systems and drivetrains. Needless to say but there is probably not too much demand for alternative fuel sources with gasoline at below $2 per gallon nationally.
- Emerald Oil, Inc. (NYSE: EOX) announced that the Company and its subsidiaries filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. Commenting on the bankruptcy the company said:
“Like many other exploration and production companies, Emerald’s operations have been significantly impacted by the dramatic decline in oil prices, the continued low prices of oil and natural gas, and the general uncertainty in the energy markets. These macro-economic factors, coupled with Emerald’s substantial debt obligations, resulted in the Company’s decision to explore strategic restructuring alternatives to reduce its debt and achieve a sustainable capital structure. Over the last nine months the Company explored and presented multiple solutions to its lenders to solve the Company’s current financial condition, however the Company was unable to obtain the requisite lender consent. Emerald continues to evaluate and discuss alternatives with its stakeholders and believes that an in-court sale process will maximize value and position Emerald for future profitability.”