Houston offshore oil company Fieldwood Energy has filed for its second bankruptcy in just more than two years.

Fieldwood filed for Chapter 11 reorganization late Monday with the U.S. Bankruptcy Court in Houston. The company has $1.8 billion of debt, court filings show.

The 2014-16 oil crash took a toll on thecompany, one of the largest offshore oil and gas producers operating in the Gulf of Mexico, forcing it into bankruptcy in February 2018.

The privately held company was able to shed $1.6 billion of debt during the first bankruptcy but the ongoing downturn caused by the coronavirus pandemic required further restructuring and a second Chapter 11 filing, court records show.

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As part of its second bankruptcy, Fieldwood has entered into a restructuring agreement with the support of lenders that hold about two-thirds of the $1.1 billion loan that makes up most of the company's $1.8 billion of debt, court records show.

Fieldwood tried to avoid a second bankruptcy in March by turning off offshore wells in 29 low-margin fields. That move saved the company $5 million a month, but as domestic oil prices continued to fall, the company halted production at all but 10 fields, court records show.

In other cost-cutting measures, the company also laid off employees and implemented 10 percent salary cuts for employees and contractors making more than $150,000 per year. The number of job cuts was not given but the company has 635 employees remaining, court records show.

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Fieldwood turned to New York restructuring firm AlixPartners in April and obtained forbearances in May that gave the company more time for restructuring negotiations to continue.

The company and its creditors are expected to appear before U.S. Bankruptcy Judge Marvin Isgur in a virtual hearing Tuesday afternoon.

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Offshore oil company files for second bankruptcy in two years - Houston Chronicle