BankruptcyData’s detailed analysis and summary of C&J Energy Services’ Second Amended Joint Plan of Reorganization, dated November 3, 2016, is now available. The U.S. Bankruptcy Court confirmed the Plan on December 16, 2016; however, an effective date has not yet been issued.
BankruptcyData notes, “The Restructuring Support Agreement and Plan provide for the reorganization of the Debtors as a going concern with a deleveraged capital structure and sufficient liquidity to fund the Debtors’ post-petition business plan. The cornerstone of the reorganization contemplated by the Restructuring Support Agreement and Plan is the full equitization of the Debtors’ existing obligations under the Credit Agreement. Further, the liquidity contemplated by the Restructuring Support Agreement, including the $200 million Rights Offering and the Exit Facility will be sufficient to fund the debtors’ post-emergence operations.”
In addition, “The Valuation Analysis estimates the Total Enterprise Value of the Reorganized Debtors to be approximately $600 million to $900 million, with a mid-point of $750 million, as of the Assumed Effective Date. After deducting an estimated funded debtor-in-possession financing of $75 million and adding pre-emergence Cash (net of cash payment of professional and transaction fees and certain estimated claims) of $18 million projected as of the Assumed Effective Date, the Reorganized Debtors’ mid-point estimate of Total Enterprise Value of $750 million implies a value for the New Common Stock of the Reorganized Debtors, prior to any equity investment on account of the Rights Offering, of approximately $693 million.”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to C&J Energy Services’ July 20, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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