American Eagle Energy announced it filed for Chapter 11 bankruptcy protection. The company noted in its 10-Q filing that on March 1, 2015 the company elected to defer the payment of about $9.8 million of interest due on its bonds.

According to a 10-Q filing for Q1/15, AEE said it lost $50.7 million primarily as a result of an impairment charge for oil and gas properties of $40.0 million. Revenues in Q1/15 were $6,874 million, down 45% from $12,545 million in Q1/14.

As of Q1/15 end, AEE showed bonds payable of $173.5 million. The company has sold $175 million of bonds last August, when West Texas Intermediate crude oil was priced new $100 per barrel, according to Bloomberg. According the filing, the 11% secured bonds were issued at a discount of 99.06%.

The filing also notes that given falling oil prices throughout Q4/14, SunTrust Robinson Humphrey, which provided AEE with a senior secured credit facility, with availability of up to $35 million of borrowing capacity, elected to perform a borrowing capacity redetermination as of YE 2104, at which time the borrowing capacity was reduced to zero.

In its 10-Q filing, AEE noted the following: “The sharp decline in oil prices that occurred during the latter part of 2014, and the continued depressed pricing, has materially reduced the revenues that were generated from the sale of the company’s oil and gas production volumes during that period, which, in turn, negatively affected the Company’s year-end working capital balance. The potential for future oil prices to remain at their current price levels for an extended period of time raises substantial doubt regarding the Company’s ability to continue as a going concern. For purposes of this discussion, the term “substantial doubt” refers to concerns that a company may not be able to meet its obligations when they come due.”