BankruptcyData‘s detailed analysis and summary of Basic Energy Services’ First Amended Plan of Reorganization, dated December 7, 2016, is now available. The U.S. Bankruptcy Court confirmed the Plan on December 9, 2016; however, an effective date has not yet been issued.
BankruptcyData notes, “The Prepackaged Plan and Restructuring Support Agreement contemplates that the restructuring will leave the Debtors’ businesses and existing corporate structure intact under Basic Services, and it will substantially deleverage the Debtors’ capital structure. The Debtors’ balance sheet liabilities will be reduced from greater than approximately $775 million in unsecured debt to approximately $131.25 million in unsecured debt (which unsecured debt is convertible into equity after, among other things, 36 months).”
BankruptcyData’s Plan Summary continues, “This deleveraging will enhance the Debtors’ long-term growth prospects and competitive position and allow the Debtors to emerge from the Chapter 11 Cases as a stronger, reorganized group of entities better able to withstand a challenging market environment for oilfield services providers.”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Basic Energy Services’ October 25, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
Read more Basic Energy bankruptcy news.