Sanchez Energy Corporation
They paid their bills on time right up until the day they filed for Chapter 11 bankruptcy protection. If you're in oil & gas, spotting risk within Sanchez Energy Corporation would have required deeper drilling.
The Texas-based company, with tentacles throughout the midwest and southeastern Unites States, sported a FRISK® score of "1" for nearly a year before filing for Chapter 11 bankruptcy protection:
We told our subscribers earlier this year to keep an eye on this volatile oil giant and with the FRISK® score in their holster, creditors had the weapon needed to avoid unnecessary exposure. Conversely, if a credit or procurement manager felt Sanchez Energy was a healthy counterparty based on their ability to meet terms, they fell for a cruel trick that blinds many when considering public company risk.
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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 CreditRiskMonitor’s 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. CreditRiskMonitor's 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.