Oil Bankruptcies to Rise Even With Rebound, Haynes & Boone Says

The debt-laden North American oil patch will still see a coming wave of bankruptcies even after a recent rebound in crude prices, according to law firm Haynes & Boone LLP.

Prices aren’t high enough for many heavily leveraged shale producers, the Dallas-based law firm said Wednesday in a report.

“It is reasonable to expect that a substantial number of producers will continue to seek protection from creditors in bankruptcy even if oil prices recover over the next few months,” the firm said.

The breakdown of a production-cut pact led by Saudi Arabia and Russia in March and the devastating impact ...