This panel examined energy and healthcare reorganizations. The unifying theme of this panel was that industries that are highly regulated, highly leveraged and lack control over their prices are prime candidates for bankruptcy. According to the moderator, Judge Margaret Mann, the panel hoped to make its presentation relevant to practitioners regardless of whether their typical client was a gas station or dentist as opposed to a major oil producer. Judge Mann said that these two areas are "vital to the economy and heavily regulated."
Bill Wallander explained that the energy industry was in a mess because oilprices dropped from $110 per barrel to $26, although they have recovered to $50. He said that companies had made their plans based on being able to survive at $70-80 a barrel but that prices kept dropping. He did add that companies that hedged were able to hold on later but that many did not have sufficient hedges. Ana Alfanso stated that banks didn't see the drop coming either. She stated that the crisis highlighted the problem with asset based lending. She added that cash was a major issue because companies without cash could not drill.
