WRT Energy: former high-flier flies for Chapter 11. (WRT Energy Corp.)

Plagued by a continuing cash crunch and a faltering stock price. WRT Energy Corp. filed for Chapter 11 reorganization last week in a Louisiana federal court.

The bankruptcy filing caps a year of troubles for The Woodlands-based company that once was the darling of investors and analysts who follow the small-cap oil and gas industry.

In November, Steve McGuire was ousted as company chairman. Last month, two shareholders filed a stockholder derivative lawsuit in California seeking restitution for the loss in stock value. And the company now seeks bankruptcy protection to fend off bondholders who have invested $100 million in the firm.

"We don't know what's going to happen yet," says Paul Hayes, an analyst with Oppenheimer & Co. "They have a good chance, but it's going to take some time."

As part of the bankruptcy filing, the company has hired investment bank Jefferies & Company Inc. as financial advisor to help develop a plan of reorganization. The company plans to …