Nuverra Environmental Solutions (a/k/a Heckman and Rough Rider Escrow) and 13 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-10949. The Company, which provides services to customers focused on the development and ongoing production of oil and natural gas from shale formations, is represented by Pauline K. Morgan of Young Conaway Stargatt & Taylor.
On April 12, 2017, the Company announced its entry into a restructuring support agreement (RSA) with the holders of more than 80% of its outstanding 12.50%/10.0% Senior Secured Second Lien Notes due 2021 to complete a comprehensive recapitalization that will significantly deleverage the Company’s balance sheet, improve liquidity and support operations.
Significant elements of the Prepackaged Plan of Reorganization and related Disclosure Statement, filed concurrently with the Chapter 11 petition, as contemplated by the RSA and subject to the terms and conditions of the RSA include the following: debtor-in-possession financing provided by the lenders under the Company’s asset-based lending facility and/or term loan; payment in full of all administrative expense claims, priority tax claims, priority claims and asset-based lending facility claims; conversion of $75 million in term loan claims into newly-issued common stock; conversion of 2021 Notes into newly issued common stock and rights in the rights offering; cancellation of the Company’s 9.875% Senior Notes due 2018 and existing common stock and a rights offering provided to the holders of the 2021 Notes, and, under certain conditions, the 2018 Notes and existing common stock to acquire, in the aggregate, $150 million of new common stock of the reorganized Company.
Also on April 12, 2017, the Company announced the retention of Robert D. Albergotti of AP Services (and a managing director of AlixPartners), as C.R.O.
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