Escalera Resources files voluntary bankruptcy petition under Chapter 11

Denver, Colorado-based Escalera Resources Co. (OTC PINK: ESCR) has filed a voluntary petition in the US Bankruptcy Court for the District of Colorado, seeking relief under the provisions of Chapter 11 of Title 11 of the US. Escalera was formerly known as Double Eagle Petroleum Co.

Escalera will continue to operate the business as debtors-in-possession under the jurisdiction of the Court. The company has filed a series of first-day motions with the Court that will allow it to continue to conduct business without interruption. These motions are designed to minimize the impact on Escalera’s operations, customers, and employees. In connection with the bankruptcy process, Escalera has an agreement regarding the use of cash collateral.

The company is an independent energy company engaged in the exploration, development, production, and sale of natural gas and crude oil, primarily in the Rocky Mountain basins of the western US. Its core operations are from natural gas wells in Wyoming.

Escalera has 14,296,000 shares of common stock outstanding, which trade on the OTC Market Group's OTC Pink marketplace, and 1,610,000 shares of Series A cumulative preferred stock outstanding (symbol "ESCRP"), which trade on the Nasdaq Capital Market.

Last month, Escalera (Nasdaq: ESCR) requested that its shares be delisted from the Nasdaq stock exchange because the company wasn’t meeting the exchange's minimum stockholders' equity requirement. Shares of Escalera haven't traded above $1 since December 2014.

The company's bankruptcy legal advisors are Onsager | Guyerson | Fletcher | Johnson of Denver.

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