Sanchez Energy Corporation

They paid their bills on time right up until the day they filed for Chapter 11 bankruptcy protection. If you're in oil & gas, spotting risk within Sanchez Energy Corporation would have required deeper drilling.

The Texas-based company, with tentacles throughout the midwest and southeastern Unites States, sported a FRISK® score of "1" for nearly a year before filing for Chapter 11 bankruptcy protection:

Sanchez BCS FRISK graph

We told our subscribers earlier this year to keep an eye on this volatile oil giant and with the FRISK® score in their holster, creditors had the weapon needed to avoid unnecessary exposure. Conversely, if a credit or procurement manager felt Sanchez Energy was a healthy counterparty based on their ability to meet terms, they fell for a cruel trick that blinds many when considering public company risk.

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About Bankruptcy Case Studies

CreditRiskMonitor® Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using our proprietary FRISK® score, robust financial database, and timely news alerts.

In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. Our proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.

Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor® Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.