Energy XXI said it has chosen not to make an interest payment due due today as it continues to hold talks with its debtholders related to alternative to improve its capital structure.
The company, which has a grace period of 30 days to make any payment, said it has retained PJT Partners LP and Vinson & Elkins LLP to advise its board in reviewing its debt.
The decision comes after crude prices declined by 70% since June 2014.
It has forced oil and gas producers to restructure their debt or seek bankruptcy protection.
Earlier today, roughly a third of oil producers were said to be at high risk of slipping into bankruptcy as low commodity prices continued to crimp their access to cash and ability to cut debt, according to a study by Deloitte.