Bonanza Creek Energy Inc (NYSE:BCEI) continues to hit lower lows in the market, its sentiments on the street having been dealt a blow amidst growing financial problems concerns. Shares of the independent energy company plunged by more than 30% after it emerged the company was retaining the services of Perella Weinberg Partners as it continues to explore restructuring options.

 Unending Financial Woes

A decision to retain the New York firm further affirms growing concerns that the company is in a tight financial spot. Bonanza Creek prospects in the industry have been hit hard, by the turmoil in the energy sector that has seen oil prices crash to multi-year lows. Its shares once traded above the $60 a share mark in 2014, before a glut in supply sent prices crushing.

 Even though oil prices have bounced back, from lows $27 a barrel early in the year, lenders are still reluctant of extending loans to the likes of Bonanza Creek given the level of uncertainty in the industry. In May, the company acknowledged that its credit line had shrunk from $475 million to $200 million. The cut is believed to have triggered the current financial mess.

 Asset Sales Struggles

Just like other firms in the industry, Bonanza has already tapped into the equity market in a bid to raise some cash. Early last year, it raised $200 million from a secondary offering of its shares. With oil prices, failing to rise to levels where profitability is guaranteed, the company finds itself in dire need of additional cash.

In the recent past Bonanza Creek Energy Inc(NYSE:BCEI) has pursued asset sales to raise some cash, but even so it is yet ink a deal for the same. Late last year Meritage Midstream pulled the plug on an asset deal that had the potential to raise $225 million, forcing the independent energy company to look for another buyer. With no one coming forward to buy the assets the company is back to zero as it continues to explore other restructuring options.