A bankruptcy judge has approved a quicker-than-normal bankruptcy path for Fort Worth-based Basic Energy Services that may allow the court to give final approval to a debt-cutting plan on Dec. 9.
The oilfield services company filed for Chapter 11 bankruptcy in Wilmington, Delaware earlier this week after announcing that it had reached a deal with creditors on a prepackaged reorganization to reduce its debtload. The proposal would provide $125 million in new money through a rights offering and the conversion of $800 million in existing bonds into equity.
The company, which moved to Fort Worth from Midland in 2012, has suffered the past two years as the decline in oil prices reduced drilling activity.
The judge overseeing its case also gave the company temporary approval to borrow as much as $90 million at 12 percent to keep operating while under court supervision. Basic Energy can initially draw $30 million on the loan, and more later as needed.
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The company also received approval to keep paying its employees while it seeks approval of its plan. The company said it employs more than 3,500 workers in more than 100 service points in oil and gas producing regions of Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and both the Rocky Mountain and Appalachian regions.
This article includes material from Bloomberg News and Star-Telegram archives.