Tumbling prices push 2 U.S. energy firms into Chapter 11

NEW YORK (Reuters) – Tumbling energy prices over the past year and a lack of credit pushed two U.S. energy companies into Chapter 11 bankruptcy, the latest in a string of such filings.

Pacific Ethanol Inc, the largest West Coast-based producer and marketer of ethanol, put its production plants in California, Oregon and Idaho in Chapter 11 bankruptcy, the company said on Monday. The company’s marketing arm, which buys and sells ethanol, did not file for bankruptcy.

Oil and gas exploration company TXCO Resources Inc said it also filed for Chapter 11 bankruptcy, along with seven subsidiaries.

Energy companies have suffered as the economic downturn sent prices for natural gas, crude oil and gasoline down sharply from their peaks in July, squeezing many of the smaller players.

Reuters