Draw First, Ask Questions Later: Why Oil and Gas Companies are Fully Tapping Their Revolvers Before Restructuring

With capital markets tightening and oil still below $30 a barrel in spite of the deal announced between Qatar, Russia, Saudi Arabia and Venezuela today to freeze oil output at current levels, a growing number of increasingly distressed oil and gas companies are fully drawing the remaining availability of their outstanding revolving credit facilities - often in the hundreds of millions of dollars - to provide themselves with options in an impending financial restructuring.