Radnor Oil And Gas Company Files For Bankruptcy Protection

Penn Virginia Corporation of Radnor has filed for bankruptcy protection, the company announced Thursday.

The oil and gas company has filed for Chapter 11 restructuring to reduce its long-term debt by more than $1 billion after being "significantly affected" by the recent decline in oil and natural gas prices.

"This is an important step forward for Penn Virginia," said Edward B. Cloues II, the company's chairman and interim CEO. "Once the restructuring is implemented, the company will have substantially less debt and a much stronger balance sheet. We will be in a better position to navigate the current industry environment and leverage the value of our underlying assets and operational expertise."

He said the company will emerge from the process with "a clear path to future production and success."

Penn Virginia has asked the court for authorization to generally continue its ongoing employee compensation without interruption. The Philadelphia Inquirer reports that the majority of Penn Virginia's employees work in its Houston operational office.

"Like many other exploration and production companies, Penn Virginia has been significantly affected by the recent and continued dramatic decline in oil and natural gas prices. We believe using the chapter 11 process is the most efficient way to achieve our financial objectives and deleverage the Company's balance sheet," said Cloues.