Stallion Oilfield Services has officially emerged from Chapter 11 protection with a stronger capital structure.
"Stallion has emerged as a leaner, stronger company prepared to capitalize on the recovering oil and natural gas industry," said Craig M. Johnson, Stallion's President and Chief Executive Officer. "We have worked hard to make this as painless as possible for all parties involved. Not only are we emerging with a much stronger capital structure, we have an improved balance sheet, paid all of our vendors in full, and we retained our unparalleled customer base," Johnson said. "We cannot thank our dedicated employees enough for making this restructuring a success. It was truly a team effort."
Stallion's plan of reorganization received unanimous support of its creditors and equity holders voting for the plan. 100% of the voting claimants voted in favor of the plan. "This is a significant achievement for the Company; we were able to complete such a unique transaction over the course of 100 days. We wouldn't have been able to do this without the support of so many people who believe in Stallion, including our employees, customers, and vendors. We are looking forward to a prosperous future," continued Johnson.
Stallion also named a new board of directors that will include: Blake Carlson, Gene Davis, Craig Johnson, J. Russell Porter, and Hobie Smith.
Mr. Davis, chairman of the board, commented, "Leading a company through a restructuring process is arduous. Craig Johnson and his management team should be congratulated for their efforts to ensure a timely and successful exit for Stallion. On behalf of the entire board, we are enthusiastic for the opportunity to be involved with a company that is known for its operational excellence and service quality in the energy sector. We also look forward to working with the management team to build from this foundation."
Stallion entered Chapter 11 on October 19, 2009 with a pre-negotiated restructuring agreement with holders of more than 90% in principal amount of its secured obligations, more than 74% in principal amount of its unsecured bridge lenders, and more than 88% in principal amount of its unsecured noteholders, as well as more than 68% of equity holders.
The Hon. Brendan Shannon of the U.S. Bankruptcy Court for the District of Delaware confirmed the Company's plan of reorganization on January 12, 2010. The plan became effective February 2, 2010.
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