Canadian oil & gas titan Bellatrix Exploration Ltd. suffered under the weight of tremendous debt, keeping their FRISK® score pinned down before eventual bankruptcy. CreditRiskMonitor’s 96%-accurate FRISK® score is calculated every day to assess bankruptcy risk in public companies and projects the likelihood of bankruptcy looking forward 12-months. High accuracy and timeliness are the two most important features of the FRISK® score that help financial risk evaluators stay ahead of bankruptcy. The FRISK® score uses a “1” (most risky)-to-“10” (least risky) scale to determine just how vulnerable a business is to failure.
Based in Calgary in the Canadian Rockies, Bellatrix sported a FRISK® score of "1" for the majority of 2019, briefly rising to a "2" before filing for Chapter 11 protection:
In this Bankruptcy Case Study, we explore why Bellatrix eventually tapped out as huge quarterly net losses piled up and working capital rapidly decreased.
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About Bankruptcy Case Studies
CreditRiskMonitor® Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using our proprietary FRISK® score, robust financial database, and timely news alerts.
In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. Our proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.
Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor® Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.