[firm] blog logo

Haynes and Boone Oilfield Services Bankruptcy Tracker ?Çô Updated October 25, 2016

While exploration and production bankruptcies have slowed, nearly two-dozen North American oilfield service companies commenced Chapter 7, Chapter 11 or Chapter 15 bankruptcy since August 1, 2016, involving over $4.8 billion in cumulative secured and unsecured debt, including Tervita Corporation ($2 billion), Key Energy Services, Inc. ($1 billion), and Basic Energy Services, Inc. ($1.1 billion). As of October 25, 2016, 70 oilfield service companies have filed bankruptcy so far this year, totaling over $13.3 billion in cumulative debt. Despite the recent spike in oil prices and increase in active drilling rigs, all indications suggest the uptick in oilfield service bankruptcies will continue in 2016 and into 2017. View the Haynes and Boone Oilfield Services Bankruptcy Tracker here.

Haynes and Boone Borrowing Base Redetermination Survey ?Çô Fall 2016 Results

Since April 2015, Haynes and Boone, LLP has conducted four borrowing base redetermination surveys, including one most recently in September 2016. The objective is to get a better idea of what lenders, borrowers (producers) and others are expecting regarding upcoming borrowing base redeterminations in light of the price uncertainty in the commodity market. The survey shows that respondents on average overall expect 41 percent of oil and gas borrowers to see a decrease in their borrowing base during the fall 2016 borrowing base redetermination season. For companies that will see a borrowing base decrease, survey participants expect borrowing bases to decrease an average of 20 percent. If you break out respondents by category, the Haynes and Boone survey shows that lenders are expecting a 16 percent decrease, while oil and gas companies are anticipating a 29 percent decrease. This difference may be the result of lenders attempting to decrease borrowing… Continue Reading

Haynes and Boone Oil Patch Bankruptcy Monitor ?Çô Updated October 19, 2016

Haynes and Boone has tracked 105 North American oil and gas producers that have filed for bankruptcy since the beginning of 2015. These bankruptcies, including Chapter 7, Chapter 11, Chapter 15, and Canadian cases, involve approximately $67.9 billion in cumulative secured and unsecured debt. As of October 19, 2016, 61 producers have filed bankruptcy so far this year, representing approximately $50.6 billion in cumulative secured and unsecured debt. Despite the recent spike in oil prices, all indications suggest more producer bankruptcy filings will occur during 2016. The latest Oil Patch Bankruptcy Monitor is available here.

SEC Releases Additional Guidance on CEO Pay Ratio Disclosure

The SEC recently published Compliance and Disclosure Interpretations (“C&DIs“) relating to the CEO pay ratio disclosure rule. This disclosure rule under Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires a public company to disclose the ratio between its CEO’s annual compensation and the median annual compensation of all other employees. The new C&DIs include guidance on the selection of an appropriate alternative compensation measure and clarify that if an alternative compensation measure is utilized to determine the median employee, the time period utilized does not have to be a full annual period. Moreover, the time period utilized does not have to include the date on which the employee population was determined. View our prior post on the SEC’s adoption of the CEO pay ratio disclosure rule?áhere. View the full text of the C&DIs here.

In-Depth Look at IRS Forms 1094 and 1095 for 2016 ACA Reporting

Earlier this month, we provided information regarding the IRS’s release of final Forms 1094 and 1095 and instructions for the 2016 Affordable Care Act (“ACA“) reporting year, which is available here. A more in-depth look at the changes to the ACA’s shared responsibility reporting requirements is available on our new companion blog, HB Health and Welfare. HB Health and Welfare provides more details regarding health and welfare benefits topics of interest, and also provides information about upcoming speaking engagements by Haynes and Boone’s benefits lawyers.

IRS Releases Final Instructions for Forms 1094-B/1095-B and 1094-C/1095-C

IRS Releases Final Instructions for Forms 1094-B/1095-B and 1094-C/1095-C

The IRS recently released final instructions for the 2016 Forms 1094 and 1095.?á Highlights of the changes and clarifications included in the final instructions are provided below. While a of the few items are ?Ç£neutral?Ç¥ and merely reflect pre-programmed changes under the Affordable Care Act that were already known and set to occur, many of the changes and clarifications are welcome news. Form 1094-B Highlights There are no substantive changes for 2016. View the 2016 Form 1094-B here. Form 1095-B Highlights The statement, ?Ç£Do not attach to your tax return. Keep for your records.?Ç¥ was inserted underneath the main heading, suggesting that the form will continue to not be required for direct substantiation purposes as part of a personal income tax filing in the future. Part I, Lines #2 and #3 and Part IV, columns (b) and (c) have been updated to reflect that TINs may be substituted for SSNs.… Continue Reading

ISS 2017 Global Voting Policy Survey Results

Institutional Shareholder Services Inc. (?Ç£ISS?Ç¥) recently released the results of its annual global voting policy survey. Respondents include institutional investors, corporate issuers, as well as consultants and advisors to public companies. Survey responses provide helpful insight into the current views of influential institutional investors in addition to signaling changes to ISS voting policies. This year?ÇÖs survey was light on executive compensation related questions but did provide helpful feedback on two topics. (1) Frequency of Say-on-Pay: 66 percent of institutional investors favor annual say on pay votes, consistent with current ISS policy. (2) Pay for Performance Metrics: 79 percent of institutional investors support the incorporation of financial metrics, in addition to total shareholder returns, into the ISS pay-for-performance models that identify potential misalignments between CEO pay and company performance. The three most popular alternatives were return on investment metrics (e.g., return on invested capital), return metrics (e.g., return on assets or… Continue Reading

Reminder to Send Out HIPAA Privacy Notice Reminders

A HIPAA Notice of Privacy Practices must be provided to new group health plan participants at the time of enrollment and within 60 days of a material revision. In addition, participants must be notified of the availability of the notice at least once every three years. This requirement can be satisfied by distributing either a copy of the notice or a reminder of the availability of the notice. A reminder of the availability of the notice can be included in annual enrollment materials or other plan publications sent to all participants. For example, group health plans that distributed a new Notice of Privacy Practices in 2013 when the final HIPAA regulations were issued should ensure they have satisfied this reminder requirement in 2016.

Haynes and Boone Oilfield Services Bankruptcy Tracker – Updated September 30, 2016

As a service to energy industry participants, the lawyers of the Oilfield Services and Bankruptcy Practices at Haynes and Boone, LLP have been tracking and reporting industry developments in oilfield service restructurings. Our research includes details on 100 bankruptcies filed since the beginning of 2015, including secured and unsecured debt totals for each case.?áThe total amount of aggregate debt administered in oilfield services bankruptcy cases in 2015- 2016 is more than $14 billion and the average debt of these cases exceeds $144 million. The largest reported bankruptcy cases involve total debt of approximately $2.7 billion (Vantage), $2.5 billion (Paragon Offshore), $1.7 billion (Seventy Energy), $1.3 billion (Hercules Offshore) and $1.3 billion (C&J). The latest Oilfield Services Bankruptcy Tracker Report is available here. Full link: http://www.haynesboone.com/~/media/files/attorney%20publications/2016/ofstracker.ashx

Federal District Court in Texas Rules on Cigna?ÇÖs ?Ç£Fee Forgiveness?Ç¥ Protocol in the Administration of Medical Benefit Claims

The U.S. District Court for the Southern District of Texas recently ruled on motions for summary judgment by both parties in North Cypress Medical Center Operating Company, Ltd v. Cigna Healthcare, holding that Cigna?ÇÖs application of its ?Ç£fee forgiveness?Ç¥ protocol (the ?Ç£Protocol?Ç¥) in the administration of benefit claims for medical services rendered by North Cypress was legally incorrect and constituted an ?Ç£abuse of discretion?Ç¥ under ERISA. ?áCigna performed claims administration services as a third-party service provider for employer-sponsored, self-funded group medical plans and as the insurer under employer-sponsored, fully-insured group medical plans (collectively, the ?Ç£Plans?Ç¥). ?áNorth Cypress was an out-of-network healthcare services provider (an ?Ç£OON Provider?Ç¥) that offered to waive or discount patients?ÇÖ cost-sharing obligations in exchange for prompt payment for its billed services. ?áWhen North Cypress submitted the patients?ÇÖ benefit claims to Cigna, Cigna applied the Protocol, which significantly reduced or denied the claim payments to North Cypress based… Continue Reading

October 2016