C&J Energy Services Inc. emerged from chapter 11 protection on Friday, eliminating about $1.4 billion of debt from its balance sheet and more than $80 million of annual interest expense, the Houston Business Journal reported. The old C&J stock has been cancelled, and the reorganized C&J will have approximately 55.5 million outstanding shares. The new shares will be issued to certain debt holders as part of the restructuring plan’s debt-for-equity conversion provisions, a rights offering and a backstop commitment agreement. Former C&J stockholders received seven-year warrants to purchase up to a combined 2 percent of the company’s new common stock, and holders of legacy C&J unsecured creditor claims will get seven-year warrants to buy up to 4 percent. C&J also entered into a new $100 million revolving credit facility and paid off outstanding amounts under its prior debtor-in-possession facility with proceeds from a $200 million equity rights offering. The company exited restructuring with more than $220 million in total liquidity, including cash and its new credit facility. Read more.
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