The global financial crisis, as well as the fall in oil prices, hit many American oil and gas companies.
American Corporation California Resources, which is the largest oil company in the state of California, filed for bankruptcy, the company said in a statement.
The company took such measures because of the crisis to carry out a planned debt restructuring, mainly related to the separation from Occidental Petroleum Corp.
A group of creditors has reportedly agreed to provide the company with $1.1 billion in funding to help it survives bankruptcy proceedings. Creditors also support a $450 million share issue and a $200 million loan to ease the company's exit from bankruptcy.
Note that this is not the first US energy company to take this step. Earlier, the American producer of shale oil and gas Extraction Oil & Gas declared bankruptcy. In early April, Whiting Petroleum, one of the largest companies conducting hydraulic fracturing operations, filed for bankruptcy.
California Resources is primarily engaged in traditional oil and gas production, although it also owns shale sites. In 2019, it received revenue of $2.6 billion.