FORT WORTH, Texas, Dec. 9, 2016 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today
announced that the Company and its affiliated chapter 11 debtors
obtained court approval of their prepackaged restructuring and
recapitalization plan (the "Prepackaged Plan"), which received near
unanimous support from voting creditors.
"The court's confirmation of our Prepackaged Plan represents a
critical step towards emerging from chapter 11 and securing a
bright future for Basic," said Roe Patterson, Basic's President and
Chief Executive Officer. "Basic is thankful for the continued
support of our creditors, employees, customers and suppliers.
Their support has been integral to the successful outcome of the
chapter 11 process and we look forward to emerging as quickly as
possible as a healthier company, poised to continue providing our
customers with dependable, high-quality services, which are the
hallmark of our Company."
Among other things, the Prepackaged Plan equitizes over
$800 million of unsecured debt,
eliminates over $60 million in annual
cash interest, and completes a new capital raise of $125 million. Specifically, the Prepackaged
Plan provides for a debt-for-equity swap that will result in its
existing unsecured bond obligations being converted into
equity. Existing shareholders will receive common stock and
warrants in the reorganized Company. In addition, the
Prepackaged Plan implements agreements the Company reached with its
existing secured lenders to continue their support of the Company
through an amended and restated term loan agreement with more
flexible covenants and an amended and restated ABL loan
agreement. Basic has also completed a $125 million fully backstopped rights offering of
mandatorily convertible notes (totaling $131.25 million principal amount of notes
including the backstop put premium), which will close on the
effective date of the Prepackaged Plan and provide the Company with
the cash it needs to operate successfully once it emerges from
bankruptcy. It is expected that the new notes will be deemed
converted into equity of Basic contemporaneously with Basic's
emergence from chapter 11 and thus will have no debt or interest
burden on Basic. All customer, vendor, and employee
obligations associated with the ongoing business will remain
unaffected.
Additional information regarding Basic's restructuring is
available at www.basicenergyservices.com/restructuring. Basic
has also established a telephone hotline and e-mail address to
respond to inquiries from interested parties regarding the
restructuring. The telephone hotline is 844-801-5971. The
e-mail address is restructuring@basicenergyservices.com.
Weil, Gotshal & Manges LLP is serving as legal counsel and
Moelis & Company LLC is serving as investment banker to Basic.
AP Services, LLC is acting as restructuring advisors to the
Company in connection with its restructuring efforts.
About Basic Energy Services
Basic Energy Services provides well site services essential to
maintaining production from the oil and gas wells within its
operating area. The Company employs over 3,500 employees in
more than 100 service points throughout the major oil and gas
producing regions in Texas,
Louisiana, Oklahoma, New
Mexico, Arkansas,
Kansas, California and the Rocky Mountain and
Appalachian regions. Additional information on Basic Energy
Services is available on the Company's website at
www.basicenergyservices.com.
Safe Harbor Statement
This release includes forward-looking statements and
projections, made in reliance on the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including
statements regarding the status of the negotiations and our
liquidity. Basic has made every reasonable effort to ensure
that the information and assumptions on which these statements and
projections are based are current, reasonable, and complete.
However, a variety of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this release, including (i) the ability
to satisfy the conditions necessary to declare the Prepackaged Plan
effective in the anticipated timeframe, (ii) changes in demand for
our services and any related material impact on our pricing and
utilizations rates, (iii) Basic's ability to execute, manage and
integrate acquisitions successfully, (iv) changes in our expenses,
including labor or fuel costs and financing costs, (v) continued
volatility of oil or natural gas prices, and any related changes in
expenditures by our customers, (vi) competition within our
industry, (vii) Basic's ability to comply with its financial
and other covenants and metrics in its debt agreements, as well as
any cross-default provisions, (viii) the length of time the Debtors
will operate under the chapter 11 cases, (ix) risks associated with
third-party motions in the chapter 11 cases, which may interfere
with the Debtors' ability to develop and consummate the Prepackaged
Plan, (x) the potential adverse effects of the chapter 11 cases on
the Debtors' liquidity, results of operations or business
prospects, (xi) the ability to execute the requirements of the
Prepackaged Plan subsequent to its effective date and (xii)
increased legal and advisor costs related to the chapter 11 cases
and other litigation and the inherent risks involved in a
bankruptcy process. Additional important risk factors that
could cause actual results to differ materially from expectations
are disclosed in Item 1A of Basic's Form 10-K for the year ended
December 31, 2015 and subsequent Form
10-Qs filed with the SEC. While Basic makes these statements
and projections in good faith, neither Basic nor its management can
guarantee that anticipated future results will be achieved.
Basic assumes no obligation to publicly update or revise any
forward-looking statements made herein or any other forward-looking
statements made by Basic, whether as a result of new information,
future events, or otherwise.
Contacts:
|
Alan
Krenek,
|
|
Chief Financial
Officer
|
|
Basic Energy
Services, Inc.
|
|
817-334-4100
|
|
|
|
Jack
Lascar
|
|
Dennard ▪ Lascar
Associates
|
|
713-529-6600
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/basic-energy-services-obtains-court-approval-of-restructuring-and-recapitalization-plan-300376109.html
SOURCE Basic Energy Services, Inc.