CCMP Capital Said to Write Down Value of Newark Stake to Zeroby and
The private equity firm, the primary backer of Fort Worth, Texas-based Newark, saw its investments in the energy producer evaporate as the company struggled amid a historic plunge in energy prices, said the people, who asked not to be identified because the information is private.
CCMP, the New York-based firm formed in 2006 by former executives of JPMorgan Chase & Co., made its first investment in Newark in 2011, according to the firm’s website, the year Newark was formed.
Newark is talking with its lenders about how to gain more time to turn around the business and avoid bankruptcy, one of the people said.
A spokeswoman for CCMP declined to comment, while Mike Herman, Newark’s chief financial officer, didn’t respond to requests for comment.
Newark E&P was founded about five years ago by former executives at ADEXCO Production and DTE Gas Resources, according to its website.
The company started its production at the Newark East Field in the Barnett Shale of Texas and has been primarily drilling in the Marble Falls formation in the Fort Worth Basin.
Quantum Energy Partners, a Houston-based private equity firm, also owns a stake in the company. A spokesman for Quantum declined to comment.