Frac-sand supplier Covia Holdings Corp. has filed for bankruptcy as part of a plan to cut more than $1 billion in debt and shed its railcar leases after taking a beating from the economic disruption sparked by the coronavirus pandemic and lower energy prices, WSJ Pro Bankruptcy reported. The Independence, Ohio-based company filed for chapter 11 protection in the U.S. Bankruptcy Court in Houston on Monday after reaching a restructuring support agreement with a group of holders of a majority of its secured debt. Under the plan, Covia’s creditors would own the reorganized company once it emerges from bankruptcy. The current majority owner of the publicly traded company is Belgian mining company SCR-Sibelco NV, which holds 65 percent of its shares. Covia has debt of about $1.6 billion, court papers show. The company said its cash reserves of about $250 million will provide liquidity to fund its U.S. operations and manage the reorganization process. Its international units, including those in Canada, Mexico and Denmark, aren’t included in the bankruptcy filing.
