Erin Energy looks to use lenders’ cash collateral to operate business

By Caroline Salls

Pittsburgh, May 4 – Erin Energy Corp. requested emergency court approval to use the cash collateral of its pre-bankruptcy lenders, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company said the cash collateral will be used as working capital in the operation of its business.

“The immediate use is necessary, and it will stabilize the debtors’ operations and revenue by allowing the debtors to maintain minimal staffing levels sufficient to operate the debtors’ business,” the motion said.

“Without authority to use cash collateral, the debtors will not be able to function as a going concern and will not be able to proceed to consideration of a plan of reorganization.”

A hearing is scheduled for May 9.

Based in Houston, Erin Energy is an explorer, developer and producer of oil and gas. The company filed bankruptcy on April 25 under Chapter 11 case number 18-32106.

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