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BJ Services Files for Bankruptcy; Will Sell Off Assets
BJ Services LLC has filed Chapter 11 bankruptcy.
The company intends to sell its assets, and is in active discussions with bidders regarding both the cementing business and portions of the fracturing business.
About BJ Services
Backed by CSL Capital and Goldman Sachs, Tomball, TX-based BJ Services filed its IPO in July 2017.
In the years since, the company had recently been bolstering its activity in the Haynesville, which included inking a TITAN frac deal with Aethon.
Shale Experts estimates that the company has approximately 1.4MM HH in its frac fleet.
CEO Commentary & Advisors
Warren Zemlak, President and Chief Executive Officer of BJ Services, said: “The industry continues to face unprecedented uncertainty caused by volatile commodity markets and significantly reduced demand due to the COVID-19 pandemic. Despite maintaining a leading market position and strong client support, the severe downturn in activity and subsequent lack of liquidity resulted in an unmanageable capital structure. After exhausting every possible alternative to address these issues and improve our liquidity, we have made the very difficult decision to proceed with a Chapter 11 process. Our Board of Directors and the entire management team worked diligently over the course of the past several weeks to avoid this outcome. Having said that, we are pleased to be in discussions with interested bidders for our cementing business and for certain portions of our fracturing business and technology.”
The Company is working with its lenders to procure liquidity to fund the sale and wind-down through the Chapter 11 process.
Kirkland & Ellis LLP is serving as legal counsel to BJ Services. PJT Partners has acted as investment banker and financial advisor to the Company. Ankura Consulting Group, LLC is acting as restructuring advisor to the Company. Simmons Co. is acting as advisor in the sale of the cementing business.
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