Last night I received notice that Triad Hunter (part of a larger Corporation) has filed for Bankruptcy in Deleware. I have received small checks for years from Triad Hunter and I am wondering how this will affect payment? I have inherited royalties in Pleasants Co., Ritchie Co. and Tyler Co. of WV. I need to try to re-read the notice, but all the legal jargon just makes my head spin. Anyone know if this means that they can keep producing but stop paying?
Thanks, Carol
I happened to find a group you started for Pleasants county via a b b search.
I have active and extinct wells controlled by that triad hunter etc entity. I also have (not the best choice of word here) a 4 inch pipeline and two meter stations but that is a separate contract.
There was a bankruptcy not too long ago. I did not really notice whether there pause that time. I sort of guess it is just a legal billable thing to do.
I would say not getting paid might be a good thing. It would mean their lease is up. I would guess you are at 1/8 and modern contracts are more. How deep are the leases?
They sent me another one just lately. I did not get past the date and time but they can delay it.
I think Triad was a subsidiary of of Magnum Hunter Resources which filed for BK a couple months back. As a generalization, you should be OK. Most operators that go bankrupt if it is a Chapter 11 end up getting a loan to continue operations. You are a creditor, but royalty owners generally rank toward the front of the line and end up getting paid. The bad news is that you may have to get a lawyer to make sure that your claim as a creditor is filed. This can be a cost prohibitive if the checks are for a small amount, but if you have you papers organized and bring them to someone to file, it shouldn't be too much.
Here is a short summary to help.