New Delaware Chapter 11 Filings – Basic Energy Services, Inc., et al.

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Basic Energy Services, Inc., and twenty-seven (27) of its subsidiaries and affiliates filed petitions for relief under chapter 11 in the Bankruptcy Court for the District of Delaware earlier this morning (Case No. 16-12320).  Basic Energy Services, Inc., and Taylor Industries LLC provide well site services to over 2,000 land-based oil and natural gas producing companies; according to the First Day Declaration, all other Debtor entities are shell entities with no material assets.  The Debtors enter chapter 11 with a prepacked plan of reorganization and $80 million in proposed debtor in possession financing provided by a consortium of the Debtors’ prepetition term lenders and an ad hoc group of their unsecured note holders.  The Debtors’ Plan proposes to convert $800 million of their unsecured notes into equity in the reorganized Basic and raise working capital through a $125 million rights offering.  100% of Basic’s prepetition secured term loan lenders and 80% of Basic’s unsecured noteholders have voted in favor of the Plan.  The Debtors’ disclosure statement can be found hereWeil, Gotshal & Manges LLP is proposed counsel to the Debtors and Epiq Bankruptcy Solutions, LLC is the proposed claims agent.  The Honorable Kevin J. Carey has been assigned to the 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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