Tri-Valley Corporation announced the company, its wholly owned subsidiaries, Tri-Valley Oil & Gas, Select Resources Corporation and TVC Opus I Drilling Program, of which the company is the managing partner, filed voluntary petitions in the U.S. Bankruptcy Court for the District of Delaware.

The company said it has received a debtor-in-possession (DIP) financing commitment of $11.05 million by its senior secured lender George T. Gamble 1991 Trust, of which $3.85 million represents new credit availability, to support the debtors’ business operations during the Chapter 11 Cases.

Upon approval by the bankruptcy court, the new DIP financing and cash generated from the debtors’ ongoing operations will be used to support the business during the bankruptcy process.

During the month of June 2012, the company worked with FTI Consulting, the company’s financial advisor, to evaluate cash flows and assess its liquidity. In June and early July, the company, representatives of the Gamble Trust and the Opus Special Committee, met to discuss potential solutions to the debtors’ pressing need for capital and the strategic alternatives available under present circumstances. After further consultation with the Gamble Trust, the OSC and their respective advisors prior to the filing date, the company concluded that the only feasible way to repay creditors and generate a substantial return to Opus investors was to seek to sell substantially all of the debtors’ assets, including those at Pleasant Valley and Claflin, in a competitive sale process under section 363 of the Bankruptcy Code.