American Eagle Energy Seeks Bankruptcy After Oil Price Drop
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American Eagle Energy Corp. filed for bankruptcy protection in Colorado after the slump in crude prices prevented it from servicing debt it took on less than a year ago.
Last August, with oil close to $98 a barrel, American Eagle sold $175 million of bonds. Since then, crude prices have dropped by about half, putting American Eagle in the same bind as other small oil and gas companies that are defaulting or seeking bankruptcy to restructure now-unmanageable debts.