Service & Supply | Oilfield Services | Deals - Acquisition, Mergers, Divestitures | Financial Trouble | Capital Markets

Basic Energy Services Files for Bankruptcy; Inks Stalking Horse Deals

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   |    Wednesday,August 18,2021

Basic Energy Services has filed for bankruptcy.

Concurrently, the company has entered into several deals to sell off its assets. The transactions are being undertaken as the “stalking horse” bidders in the court-supervised sale process.

Deals:

• Axis will acquire substantially all of the Company's Well Servicing and Completion & Remedial segment assets outside of California

• Berry Corp. will acquire substantially all of the Company's assets in California

• Select will acquire substantially all of the Company's Water Logistics segment assets outside of California, including all of the assets of Agua Libre Midstream, LLC

Keith Schilling, President and Chief Executive Officer of Basic, said: “We believe the asset purchase agreements will enable us to maximize the value of our businesses and create the best path forward for our customers, partners, employees and the communities we serve. The Company has faced extraordinary challenges as a result of the COVID-19 pandemic, and we thank the Basic team for their ongoing hard work and dedication as we continue to provide our customers outstanding service, experienced crews and a wide range of safe and efficient production services.”

Basic has received a commitment for $35.0 million in debtor-in-possession (“DIP”) financing from Guggenheim Credit Services, LLC. Upon court approval, this new financing, together with cash generated from the Company’s ongoing operations, is expected to provide sufficient liquidity to support the Company during the court-supervised process.

Weil, Gotshal & Manges LLP is serving as Basic’s legal counsel, Lazard is serving as financial advisor and AlixPartners LLP is serving as restructuring advisor.