The loan will help the company keep afloat during the bankruptcy proceedings.
The company’s finances were hit partly due to the Gulf of Mexico drilling ban enacted in response to 2010’s deadly Deepwater Horizon disaster.
New operational setbacks at Gulf of Mexico platform and a deepwater well in the Mediterranean Sea, costly maintenance of deepwater projects and BP oil spill project also added to the company’s financial woes.
Last year, the company was among the first to resume drilling following the lifting of the moratorium by the US Government.
According to a securities filing, the company arranged to pay vendors using royalties from its wells rather than up-front cash. It also renegotiated payment to a key manufacturer in China, sold convertible preferred shares and delayed some projects.
In early June 2012, ATP had hired a new CEO, former Dynamic Offshore Resources chief Matt McCarroll, and a week later he rescinded a purchase of one million shares and quit the office.
In a securities filing, ATP said it will be late in filing its second quarter results as it is unable to determine if there will be any significant changes in its results of operations from the quarter ended 30 June, reports energy-pedia.com.
ATP is a partner with Israel-based Isramco in the offshore Shimshon license located 90kms northwest of Ashdod, which was declared a natural gas discovery in August 2012.
The license has a best estimate of 2.3 trillion cubic feet (TCF) of natural gas with a 20% geological probability of success.
The well’s production tests produced 39.08 million cubic feet of gas and 9.3 million barrels of condensate, at an average rate of 22.7 million cubic feet of gas a day.