Basic Energy Services, which has been working with creditors to restructure its debt in the face of depressed energy prices, filed a voluntary bankruptcy petition in Delaware, the company said Tuesday.
The Fort Worth-based oilfield service company had said Monday that creditors, including secured term loan lenders and senior unsecured bondholders, had agreed to a prepackaged reorganization plan that will reduce debt and provide $125 million of liquidity, according to the statement.
The company said it hopes to get the prepackaged plan approved and exit bankruptcy by the end of the year.
Basic Energy Services, based in the Burnett Plaza office tower, moved to Fort Worth from Midland in 2012. The company offers a range of services from drilling and fracking to wastewater disposal.
Launched in 1992, the company grew with the drilling boom of the past decade only to suffer as the drop in oil prices reduced drilling activity.
The “sharp and prolonged period of depressed commodity prices” in recent years sapped operating cash flow, Chief Executive Officer Roe Patterson said in Monday’s statement.
“The fundamentals of the business are strong and having access to new capital will enable us to strengthen our current business lines, grow organically as opportunities develop and participate in potential merger and acquisition activities in the future,” he said.
Basic Energy joins at least 100 North American oilfield services companies that have gone bankrupt in 2015 and 2016 since energy prices slid, according to a tally by the Haynes & Boone law firm. Basic Energy warned in a July 29 filing that it may be unable to stay in business if it couldn’t find a way to repay or refinance its debts. The company skipped an $18.4 million interest payment in August.
This report includes material from Bloomberg News.