The U.S. Bankruptcy Court approved Forbes Energy Services’ Disclosure Statement and concurrently confirmed its Joint Prepackaged Chapter 11 Plan of Reorganization.
According to documents filed with the Court, “As of the date hereof, the Debtors had outstanding debt having a principal amount of over $300 million. Upon emergence from chapter 11, the Reorganized Debtors expect to have outstanding debt primarily consisting of obligations under a contemplated $50 million term loan Exit Facility. Accordingly, the Reorganized Debtors will have a significantly deleveraged and improved balance sheet and a more appropriate capital structure. Pursuant to the Restructuring Support Agreement…the Debtors have obtained the agreement of Holders of approximately 65.40% in principal amount of the Senior Unsecured Notes to vote in support of the Plan. The Senior Unsecured Notes represent $280 million in principal obligations owed by the Debtors, plus projected accrued interest of approximately $32 million as of January 23, 2017.”
In addition, “Under the Plan, the Senior Unsecured Notes will be exchanged for $20 million in cash and 100% of the New Common Stock in Reorganized Parent, subject to dilution on account of shares issued or available for issuance under the Management Incentive Plan. Allowed Secured Claims either will be reinstated or paid in full under the Plan. Holders of General Unsecured Claims also will receive payment in full and are unimpaired under the Plan. Equity Interests in FES, inclusive of the Existing Preferred Stock, will be extinguished.”
This oilfield services contractor filed for Chapter 11 protection on January 22, 2017, listing $412 million in pre-petition assets.
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