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Investors in troubled oil bonds leaning on banks for rescue

Funds now have to decide to sell their junk-rated debt at deep discounts or wait for possible crude price recovery

Published Wed, Dec 17, 2014 · 09:50 PM

Boston

INDEPENDENT oil exploration and production companies are leaning heavily on bank credit lines to survive plunging crude prices, making it a nervous time for US funds holding their junk-rated debt.

"The question is, 'How long do the banks keep the heart beating?'" said Francis Bradley III, a Greenberg Traurig lawyer in Houston who specialises in energy company financing deals. "It's not an unlimited lifeline."

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