CARBO Ceramics Files for Chapter 11 Bankruptcy
CARBO Ceramics Inc. has initiated the process of filing a Chapter 11 bankruptcy case in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. As part of the process the company has reached an agreement with Wilks Brothers LLC and Equify Financial LLC under which the Wilks Brothers will acquire CARBO through a debt-for-equity exchange.
"Like many companies with a significant concentration in the oil and gas industry, we have felt the impact of the challenging business environment and, in response, have worked diligently to strengthen our overall financial foundation," said Gary Kolstad, Chairman and Chief Executive Officer.
"While CARBO has undoubtedly made progress in our transformation strategy, we ultimately expect these headwinds to persist. Accordingly, we are pleased to reach an agreement with the Wilks Brothers; we are excited by their belief in the promise of CARBO's business and their commitment to our future. We are confident that, under their ownership and investment, we will be better positioned to maximize value, realize the potential of CARBO and serve our customers as we move forward."
The Wilks Brothers will provide $15 million in debtor-in-possession financing. These funds, combined with CARBO's usual operating cash flows, will allow CARBO to continue to operate during the restructuring.
"We have long believed in the underlying strength of CARBO's business, as exemplified by our multi-year relationship with the company," said Matt Wilks for Wilks Brothers LLC. "This transaction will allow us to invest in the future of CARBO as we pursue opportunities to unlock value and support growth."
CARBO is a global technology company that provides products and services to oil and gas, industrial, agricultural, and environmental markets.
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