While the dropping gas prices are good news for the millions of drivers in the U.S., it comes at a high cost for many Houston upstream energy producers. Business lawyers are stepping in to help these struggling companies to restructure for 2015.
"I think many of the players are hedged out to 2015 such that the lower prices won't impact them this year, whereas some of the oil field service companies — they can't hedge, so they will experience an immediate drop in demand for their services," said Lydia Protopapas, a bankruptcy specialist who is located in Houston.
Another factor that could cause more companies to seek financial solutions are the number of private equity and hedge funds that are waiting for the impending number of distressed companies in Houston to collapse. PE and hedge funds specializing in distressed companies often seek businesses with "cleansed" assets, said John Melko who advises companies in need of reorganization. This action in bankruptcy court discharges the debtor from liability for certain kinds of overhanging debt prior to the filing. Distressed companies could have another potential incentive to file for Chapter 11 if it's part of a larger deal with a fund.
Fortunately, with the help of online business lawyers, those who need legal advice can find guidance with the help of innovators like UpCounsel. These cyber lawyers are able to connect with potential clients in a virtual marketplace compiled of thousands of attorneys located all over the United States, including business lawyers in Houston and throughout the great state of Texas. They are able to offer much more competitive costs for legal services since they are primarily based online and carry minimal overhead when compared to big law firms. This is an obvious advantage for those whose company’s well-being is precarious and hanging in the balance.
So, will gas prices go back up anytime soon? Experts say they could start going up in the summer when more people drive to the beach and on other vacations, and oil companies switch to summer blends. However, now is the best time for flailing oil companies to call on the aid of a business lawyer to prepare for whatever may come down the pipeline.
UpCounsel helps businesses and entrepreneurs to easily hire great attorneys on-demand that best match their legal needs and budget. By using UpCounsel’s virtual legal marketplace to get advice and compare free proposals from specialized attorneys, businesses save hours of time searching for legal services and reduce their legal costs by 60% on average when compared to expensive law firms. To date, thousands of companies have used UpCounsel to save millions of dollars on legal services.
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