PNG Ventures Inc filed for Chapter 11 protection in a Delaware bankruptcy court, becoming the second liquefied natural gas company this week to buckle under pressure from falling gas prices.
In court filings, the company said it was confronted with losses from operations and default under a $36.3 million secured credit facility.
Natural gas prices have been pressured to 7-1/2-year lows by bearish domestic fundamentals, while crude, which is more heavily impacted by international factors, has been bolstered this year by growing economic optimism.
Trident Resources Corp and its affiliates filed for Chapter 11 protection late on Tuesday, also citing a significant drop in natural gas prices.
PNG Ventures listed assets of about $40 million and debt of about $44.6 million in its Chapter 11 filing, which included five affiliates.
The case is In re: PNG Ventures Inc, U.S. Bankruptcy Court, District of Delaware (Delaware), No.09-13162. (Reporting by Santosh Nadgir in Bangalore; Editing by Anne Pallivathuckal)