Distressed U.S. Oil & Gas Assets: Investor Opportunity or Disaster?

The video discusses the ongoing bankruptcy cycle in the oil and gas industry, highlighting the significant debt involved since 2015. Despite initial predictions, the cycle is not yet over, with expectations of further debt at risk. The discussion covers the structure of debt in bankruptcies, emphasizing the impact on senior secured lenders, junior debt, and equity. Predictions for future debt volumes and recovery prospects are also explored.

What was the initial prediction about the duration of the bankruptcy cycle in the oil and gas industry?

• It would end by 2016.

• It would last indefinitely.

• It would take a couple of years.

• It would last a few months.

As of 2019, how much debt has been involved in bankruptcies since 2015?

• $50 billion

• $70 billion

• $108 billion

• $200 billion

What is the predicted additional amount of debt at risk over the next two years?

• $60 to $80 billion

• $25 to $50 billion

• $10 to $20 billion

• $100 billion

In the recovery process, which layer of debt is most likely to be converted to equity?

• Equity

• Junior debt

• First lien debt

• Senior secured lenders

What significant change occurred in 2019 regarding first lien debt?

• It was completely wiped out.

• It saw significant impairment.

• It was unaffected by bankruptcies.

• It doubled in value.