Ultra Petroleum flags going concern risk, warns of bankruptcy

Mon Feb 29, 2016 1:58pm EST
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Feb 29 (Reuters) - Natural gas producer Ultra Petroleum Corp said its auditors had raised doubts about its ability to stay in business and that it may have to seek bankruptcy protection in the United States or Canada.

The company, reeling from a prolonged slump in commodity prices, said on Feb. 18 that it was considering strategic alternatives and that it had engaged Kirkland & Ellis LLP as legal adviser and Rothschild and Petrie Partners as financial advisers.

Ultra Petroleum said in a regulatory filing on Monday that it expects to default on a credit agreement on March 15.

The company said it would file for bankruptcy protection if it failed to make debt payments, restructure debt or secure additional capital.

Ultra Petroleum had $3.76 billion in total outstanding debt principal as of Feb. 29.

The company had $1.46 billion due between March 2016 and October 2025 and $630 million due in October 2016.

Ultra Petroleum had a market capitalization of $53.6 million as of Friday's close.

The company's shares were up 5.8 percent at 37 cents in mid-afternoon trading. (Reporting by Amrutha Gayathri in Bengaluru; Editing by Maju Samuel)