Vista Proppants and Logistics Files for Chapter 11
Vista Proppants and Logistics LLC and its subsidiaries have started the process for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division. The company estimates the process will take approximately 120 days, and expects to operate normally when the oil and gas industry rebounds.
Vista has also secured an $11 million debtor-in-possession credit facility from its senior lenders to cover costs and business operations during the restructuring, including meeting obligations to employees, vendors and other constituencies.
"Today's Chapter 11 filings represent a significant milestone in our financial restructuring process to significantly strengthen our financial condition by reducing debt, enhancing liquidity and best positioning our company to weather the storm and proactively respond when the market begins to recover,” Kristin Whitley Smith, CFO, said in a written statement.
“After thoroughly evaluating our options and strategic alternatives with our advisors and board of directors, we are confident that this is the best path forward for Vista and our stakeholders. During the reorganization proceeding, we will continue with limited day-to-day operations until an industry rebound, and we will maintain ample liquidity and resources to support our business. We appreciate the continued, strong support demonstrated by our lenders, which should enable us to move quickly and smoothly through the restructuring process and emerge as a stronger long-term competitor."
Vista is an in-basin provider of frac sand solutions for oil and gas well completions in oil and gas regions of the United States, including the Permian Basin and Eagle Ford Shale.
To contact the author, email firstname.lastname@example.org.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.