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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Energy XXI Ltd. on Friday announced that it has successfully completed its financial restructuring and emerged from chapter 11, according to a press release. Through this process, Energy XXI has substantially improved its financial position by eliminating more than $3.6 billion of debt from its balance sheet. Effectively immediately, Energy XXI common stock will cease trading on the OTC Market. Energy XXI Gulf Coast, Inc. (EGC), as successor to Energy XXI, will have approximately 33 million shares outstanding after the reorganization issued pursuant to the restructuring plan. Read more.
Get a better understanding of what happens when an oil, gas or other natural resources company goes bankrupt. Order your copy of ABI's revised and expanded When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy, Second Edition.
Basic Energy Services has completed its restructuring and recapitalization plan and emerged from chapter 11 protection, the Fort Worth (Texas) Star-Telegram reported today. The oil field services company filed for chapter 11 in Wilmington, Del., in October after saying that it had reached a deal with creditors on a prepackaged reorganization to reduce its debt. The company announced it was exiting bankruptcy court on Dec. 23. With its pre-packaged plan, Basic divided among several investors over $800 million of unsecured debt, including accrued interest, in the restructuring. It also eliminated over $60 million in annual cash interest and raised $125 million of new capital, according to a company statement. Stockholders will receive new common stock and warrants in the reorganized company. Read more.
Get a better understanding of what happens when an oil, gas or other natural resources company goes bankrupt. Order your copy of ABI's revised and expanded When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy, Second Edition.
