New Delaware Chapter 11 Filing – Nuverra Environmental Solutions (17-10949)
Nuverra Environmental Solutions, Inc. (OTCQB: NESC), one of the largest environmental solutions companies focused on the development and ongoing production of oil and natural gas in the United States, and 13 of its affiliates, have filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (Lead Case No. 17-10949). The petition lists between $100 and $500 million in assets and between $500 million and 1 billion in liabilities. The Debtors enter chapter 11 with a prepacked plan of reorganization that, pursuant to the Company’s Chief Executive Officer and Chairman “has overwhelming support . . . from [the] Term loan lenders and 2021 noteholders.” The debtors have also filed a disclosure statement regarding their plan. Pursuant to the First Day Declaration, the Debtors goal is to emerge quickly from chapter 11 with reduced debt. The Debtors secured $31.5 million in DIP financing from lenders under their Existing Revolving Credit Facility and $12.5 million from their Existing Term Loan Lenders. Prime Clerk is the proposed claims agent. The company previously issued a press release regarding its restructuring plans. The Honorable Kevin J. Carey will be presiding over these cases.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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