Creditors who funded the United States shale boom are not in good shape to recover their invested funds, according to Moodys Investors Service.
Banks and private lenders have only gotten back $1 of every $5 they invested in companies that declared bankrupt in 2015, the credit rating agency reports, which analyzed 15 bankrupted energy companies with at least $100 million of debt, said. Creditors usually recover three times as much from defaulting debtors.
Senior unsecured bondholders recovered just 6 cents for every dollar invested, according to World Oil.
The one-fifth figure stands slightly lower than the recovery rate reported by creditors who supported the telecom boom in the early 2000s. The number of oil companies that fail…