Texas oil company facing Idaho lawsuit files for bankruptcy

Posted at 2:21 PM, Sep 17, 2019
and last updated 2019-09-18 10:03:38-04

BOISE, Idaho — A Texas company that made Idaho a natural gas and oil-producing state -- but is facing a federal lawsuit from disgruntled royalty recipients as well as an investigation by Idaho authorities involving production records -- has filed for bankruptcy protection.

Alta Mesa Resources and associated companies filed for Chapter 11 bankruptcy protection last week in U.S. Bankruptcy Court in Texas, where the company is based.

The filing means the federal lawsuit in Idaho is on hold.

Some Idaho mineral rights holders contend the company underpaid royalties using shady accounting methods.

The company has denied the allegation.

Alta Mesa says, in court documents, the bankruptcy filing is primarily due to unprofitable investments in Oklahoma.

On another front, the U.S. Securities and Exchange Commission is investigating the company's financial reporting.

(by Keith Ridler, Associated Press)