HAMILTON, Bermuda, July 20, 2016 /PRNewswire/ -- C&J Energy
Services Ltd. (NYSE: CJES) ("C&J" or the "Company") today
announced that it has commenced cases for a voluntary
reorganization under Chapter 11 of the U.S. Bankruptcy Code in
the United States Bankruptcy Court
for the Southern District of Texas, Houston Division. The
reorganization cases contemplate implementing the previously
announced Restructuring Support Agreement (as amended, the "RSA")
that C&J executed with its lenders, which provides for the
elimination of approximately $1.4
billion in debt from the Company's balance sheet,
substantially deleveraging C&J's capital structure and strongly
positioning the Company for long-term success. Additionally,
the RSA contemplates that, subject to the satisfaction of certain
conditions, the Company will issue one series of seven-year
warrants to existing common stockholders, based on their pro rata
share, exercisable for up to an aggregate of 6% of new common stock
at a strike price of $1.55
billion. Currently, lenders that beneficially own or
manage greater than 83% of the aggregate principal amount of debt
outstanding under the Company's credit facilities are parties to
the RSA. The Company currently estimates that it will emerge
from the Chapter 11 reorganization within approximately 130 to 180
days, and fully expects operations to continue as normal throughout
the court-supervised financial restructuring process.
President, Chief Executive Officer and Chief Operating Officer
Don Gawick commented, "Today's
Chapter 11 filings represent a significant milestone in our
financial restructuring process to significantly strengthen our
financial condition by reducing debt, enhancing liquidity and best
positioning our Company to proactively respond as the market begins
to recover. After thoroughly evaluating our options and
strategic alternatives with our advisors and Board of Directors, we
are confident that this is the best path forward for C&J and
all our stakeholders. During the reorganization proceeding,
all of our day-to-day operations will continue in the normal
course, and we will maintain ample liquidity and resources to
support our business and continue providing safe, reliable and
efficient services to all of our customers. We appreciate the
continued, strong support demonstrated by our lenders, which will
hopefully enable us to move quickly and smoothly the restructuring
process.
"On behalf of C&J's Board of Directors and executive
management team, I want to thank our employees for their continued
hard work and dedication, and note that we look forward to working
with our customers and vendors as we move through this process and
build a strong foundation for C&J to emerge as a stronger
partner."
Additional information about the reorganization process is
contained in a Current Report on Form 8-K that the Company will
file with the U.S. Securities and Exchange Commission. The
Company has also posted additional information about the
reorganization process under the investor relations section of the
Company's website at www.cjenergy.com and has set up a toll free
information line to answer questions pertaining to the
restructuring, which can be accessed by dialing (866) 296-8019.
About C&J Energy Services
C&J Energy Services is a leading provider of well
construction, well completions, well support and other
complementary oilfield services to oil and gas exploration and
production companies. As one of the largest completion and
production services companies in North
America, C&J offers a full, vertically integrated suite
of services involved in the entire life cycle of the well,
including directional drilling, cementing, hydraulic fracturing,
cased-hole wireline, coiled tubing, rig services, fluids management
services and other special well site services. C&J
operates in most of the major oil and natural gas producing regions
of the continental United States
and Western Canada. For additional information about C&J,
please visit www.cjenergy.com.
C&J Energy Services Investor Contact
Daniel E. Jenkins
Vice President – Investor Relations
investors@cjenergy.com
1-713-260-9986
Forward-Looking Statements and Cautionary Statements
This news release (and any oral statements made regarding the
subjects of this release) contains certain statements and
information that may constitute "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical
fact, that address activities, events or developments that we
expect, believe or anticipate will or may occur in the future are
forward-looking statements. The words "anticipate,"
"believe," "ensure," "expect," "if," "once," "intend," "plan,"
"estimate," "project," "forecasts," "predict," "outlook," "aim,"
"will," "could," "should," "potential," "would," "may," "probable,"
"likely," and similar expressions that convey the uncertainty of
future events or outcomes, and the negative thereof, are intended
to identify forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include statements, estimates
and projections regarding our business outlook and plans, future
financial position, liquidity and capital resources, operations,
performance and other guidance regarding future developments.
For example, statements regarding future financial performance,
future competitive positioning, future benefits to stockholders,
and future economic and industry conditions are forward-looking
statements within the meaning of federal securities laws.
Forward-looking statements are not assurances of future
performance. These forward-looking statements are based on
management's current expectations and beliefs, forecasts for our
existing operations, experience, expectations and perception of
historical trends, current conditions, anticipated future
developments and their effect on us, and other factors believed to
be appropriate. Although management believes that the
expectations and assumptions reflected in these forward-looking
statements are reasonable as and when made, no assurance can be
given that these assumptions are accurate or that any of these
expectations will be achieved (in full or at all). Moreover,
our forward-looking statements are subject to significant risks,
contingencies and uncertainties, many of which are beyond our
control, which may cause actual results to differ materially from
our historical experience and our present expectations or
projections which are implied or expressed by the forward-looking
statements. Important factors that could cause actual results
to differ materially from those in the forward-looking statements
include, but are not limited to, risks associated with the
following: a decline in demand for our services, including due to
declining commodity prices, overcapacity and other competitive
factors affecting our industry; the cyclical nature and volatility
of the oil and gas industry, which impacts the level of
exploration, production and development activity and spending
patterns by the oil and gas industry; the inability to comply with
the financial and other covenants and metrics in our debt
agreements as a result of reduced revenue and financial performance
or our inability to raise sufficient funds through assets sales or
equity issuances should we need to raise funds through such
methods; a decline in, or substantial volatility of, crude oil and
gas commodity prices, which generally leads to decreased spending
by our customers and negatively impacts drilling, completion and
production activity and therefore impacts demand and pricing for
our services, which negatively impacts our results of operations,
including potentially resulting in impairment charges; pressure on
pricing for our core services, including due to competition and
industry and/or economic conditions, which may impact, among other
things, our ability to implement price increases or maintain
pricing on our core services; the loss of, or interruption or delay
in operations by, one or more significant customers; the failure to
pay amounts when due, or at all, by one or more significant
customers; changes in customer requirements in markets or
industries we serve; costs, delays, regulatory compliance
requirements and other difficulties in executing our long-term
growth strategy, including those related to expansion into new
geographic regions and new business lines; the effects of future
acquisitions on our business, including our ability to successfully
integrate our operations and the costs incurred in doing so;
business growth outpacing the capabilities of our infrastructure;
adverse weather conditions in oil or gas producing regions; the
effect of environmental and other governmental regulations on our
operations, including the risk that future changes in the
regulation of hydraulic fracturing could reduce or eliminate demand
for our hydraulic fracturing services; the incurrence of
significant costs and liabilities resulting from litigation; the
incurrence of significant costs and liabilities resulting from our
failure to comply, or our compliance with, new or existing
environmental regulations or an accidental release of hazardous
substances into the environment; expanding our operations overseas;
the loss of, or inability to attract key management personnel; a
shortage of qualified workers; the loss of, or interruption or
delay in operations by, one or more of our key suppliers; operating
hazards inherent in our industry, including the significant
possibility of accidents resulting in personal injury or death,
property damage or environmental damage; and accidental damage to
or malfunction of equipment.
C&J cautions that the foregoing list of factors is not
exclusive. For additional information regarding known
material factors that could cause our actual results to differ from
our present expectations and projected results, please see our
filings with the U.S. Securities and Exchange Commission, including
our Current Reports on Form 8-K that we file from time to time,
Quarterly Reports on Form 10-Q and Annual Report on Form
10-K. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise, except as
required by law.
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SOURCE C&J Energy Services Ltd.