Onshore oilfield operator Basic Energy Services Inc. began trading once again on the New York Stock Exchange Tuesday after emerging from Chapter 11 bankruptcy protection.
The prepackaged plan, approved in early December by the U.S. Bankruptcy Court for the District of Delaware, allowed the Fort Worth, TX-based operator to eliminate more than $800 million of unsecured debt, including accrued interest, and more than $60 million in annual cash interest. Basic also raised $125 million of new capital. Existing shareholders as of Dec. 23 were to receive new common stock and warrants in the reorganized company, which is trading under its former ticker symbol "BAS."
Completing the restructuring and recapitalization "allows the company to move forward with a solid financial foundation from which we expect to continue to strengthen our business and grow," said CEO Roe Patterson. "We now have the financial flexibility to continue to provide our customers with industry-leading expertise and safe, efficient services."
Basic employs more than 3,500 people in 100-plus service points across the U.S. onshore. The prepackaged plan provided that the initial board of directors have a total of seven members, with six now designated. Patterson would continue to lead as chairman and is joined by Timothy H. Day, John Jackson, James D. Kern, Samuel E. Langford and Julio Quintana.
"Our newly constituted board is comprised of a diverse group of individuals with a range of backgrounds and expertise, each of whom will bring fresh perspective to Basic," Patterson said.
Bankruptcies in the downtrodden oil and gas industry have slowed in recent months, but they continue. Onshore explorers Memorial Production Partners LP and Bonanza Creek Energy Inc. last week announced they each planned to restructure under bankruptcy protection plans.