Water Treatment | Oilfield Services | Financial Trouble | Capital Markets

STW Resources Files for Bankruptcy

Share Print Bookmark    |    Tuesday,August 09,2016

STW Resources Holding Corp. has elected to file a voluntary petition under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas.

"We believe this decision is in the best interests of the creditors and shareholders," said Alan Murphy, president and chief executive officer, STW Resources Holding Corp. "The protections afforded by Chapter 11 provide for an orderly process and additional time that enables us to pursue the strategic and financial alternatives that are in process. The filing minimizes the impact from the recent demand by our current creditors.

Through this process, and under the supervision of the bankruptcy court, we expect to be able to formulate a plan which will generate the maximum possible return for all parties involved. STW intends to continue to work with all classes of creditors to manage and operate its business under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code. The Company is working with investors and creditors to review financial and strategic alternatives with the goal of repayment of all claims and maximization of stockholder value. Potential alternatives to be explored further and evaluated during the review process may include raising additional capital, a strategic collaboration with one or more parties, or the sale or divestiture of some operating companies.

 We anticipate that a committee of creditors will be formed, again under the supervision of the Bankruptcy Court, to assist in the reorganization process.