Basic Energy Services has completed its restructuring and recapitalization plan and emerged from Chapter 11 bankruptcy protection.
The oil field services company filed for Chapter 11 bankruptcy in Wilmington, Del., in October after saying it had reached a deal with creditors on a prepackaged reorganization to reduce its debt. The company announced it was exiting bankruptcy court on Dec. 23.
With its prepackaged plan, Basic divided among several investors over $800 million of unsecured debt, including accrued interest, in the restructuring. It also eliminated over $60 million in annual cash interest and raised $125 million of new capital, according to a company statement.
Stockholders will receive new common stock and warrants in the reorganized company.
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CEO Roe Patterson said in a statement that the court action “marks the completion of a restructuring and recapitalization that allows the company to move forward with a solid financial foundation from which we expect to continue to strengthen our business and grow.”
“We now have the financial flexibility to continue to provide our customers with industry-leading expertise and safe, efficient services,” Patterson said.
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 company offers a range of services from drilling and fracking to wastewater disposal.
Trading in the new common shares on the New York Stock Exchange started Tuesday. Basic (ticker:BAS) dropped 6.68 percent in value to close at $36.40 on its initial day of trading but was up to $38.11 in after-hours trading.
This report includes material from the Star-Telegram archives.