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On The Brink of Bankrupcy; CJ Energy Gets Lifeline
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CJ Energy Service is reporting that it has secured another extension with its lending group through july 17, 2016, without such an extension the company would have been in default as a result of covenant breach.
The company has also mentioned that there is a tentative agreement on the table whereby the $1.4 billion in debt would be converted to common equity. The lending grroup would also be required to provide a fresh influsion of capital into the company.
The company has seen the number of jobs fall precipitously.
Below is a table from Shale Experts Frac Database, showing number of Jobs by the Combined (CJ Energy Services + Nabors Completions)
CJ Energy Frac Jobs (Q1-2014 - Q1-2016)
Source : Shale Experts Frac Database
With completions making up more than 60% of the company's revenue, its apparent that a fall in completion services directly affects the company ability to serive its debts.
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