Service & Supply | Oilfield Services | Bankruptcy / Restructure Update | Financial Trouble | Capital Markets
After Citing Ongoing Concern, Hi-Crush Files for Bankruptcy
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Hi-Crush Inc. has filed for bankruptcy.
This comes over two weeks after the company cited growing concern and warned of a possible filling. The plan will result in the elimination of approximately $450 million of unsecured note debt and an ongoing reduction in annual interest expense of greater than $43 million.
As part of the Chapter 11 filing, Hi-Crush has entered into a RSA with certain noteholders, collectively owning or controlling approximately 94% of the aggregate outstanding amount of the Company's 9.5% Senior Unsecured Notes due 2026.
In addition, the Company has received commitments from its various pre-petition lenders for $65 million in Debtor-In-Possession and exit financing.
Robert E. Rasmus, Chairman and Chief Executive Officer of Hi-Crush said: "We are very pleased to have reached this agreement with our various lenders. The agreement will allow Hi-Crush to maintain normal operations and continue delivering high quality services to our customers. We will also significantly improve our balance sheet and enhance our Company's financial flexibility over the near and long-term. The exchange of debt for equity is a clear indication of the high confidence our noteholders have in the future of Hi-Crush. The agreement itself will simplify and accelerate the restructuring process, and we expect to emerge from this process in an even stronger market position, with an enhanced ability to execute on our operational strategy and grow our business over the long-term. We look forward to continuing to work with all of our partners across the oil and gas industry."
Hi-Crush Portfolio
Other Frac Sand companies that have filed chapter 11 bankruptcy includes
- Emerge
- Prefered Sands
- Vista
Advisors
Lazard is acting as financial advisor, Latham & Watkins LLP is acting as legal counsel, and Alvarez & Marsal is acting as restructuring advisor to Hi-Crush Inc. in connection with the Prearranged Plan. Moelis & Company is acting as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison is acting as legal advisor to the Noteholders.
This press release does not constitute an offer to sell or purchase any securities, which would be made only pursuant to definitive documents and an applicable exemption from the Securities Act of 1933, as amended.
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