C&J Energy Services is latest of oil and gas companies to complete financial restructuring brought on by the industry downturn.
Less than a year after the untimely death of its CEO and a subsequent bankruptcy filing, C&J Energy Services has completed its financial restructuring and emerged from Chapter 11.
The company set out in July to eliminate $1.4 billion in debt, which it has accomplished along with dispensing of more than $80 million in annual interest expenses, the company said in a statement.
“The company's de-levered balance sheet and enhanced liquidity position is an outstanding resolution for our stakeholders, and strongly positions C&J to expand our business as the commodity price environment improves and the industry rebounds,” said CEO Don Gawick, president and CEO.
Effective Jan. 6, C&J had paid off an outstanding balance from a $200 million equity rights offering and entered a new $100 million revolving credit facility. Adding its cash balance with the available borrowing capacity, C&J is emerging from bankruptcy with more than $220 million in liquidity.
The well completion and construction company was one of more than 100 businesses overwhelmed by the oil and gas downturn and sought bankruptcy protection. However, in recent months, several have emerged from restructuring with stronger balance sheets. In October alone, Houston-based Goodrich Petroleum Corp. and Oklahoma’s SandRidge Energy Inc. returned to trading on the public markets.
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