Filing Alert: Nine Energy Service Chapter 11

Nine Energy Service, Inc., a Houston, TX-based onshore oilfield services business that specializes in oil and gas resource extraction and development, filed ...

Nine Energy Service, Inc. and its debtor affiliates⁽¹⁾, a Houston, TX-based onshore oilfield services business that specializes in oil and gas resource extraction and development, filed for Chapter 11 protection on Feb. 1 in the U.S. Bankruptcy Court for the Southern District of Texas.

The company attributes the filing to an overleveraged capital structure, persistent pricing declines in the oil and gas industry, and reduced drilling activity, which constrained liquidity and hindered its ability to compete or pursue strategic consolidation.

The prepackaged filing aims to implement a comprehensive balance sheet restructuring pursuant to a Restructuring Support Agreement (RSA) with an ad hoc group holding over 70% of the company's senior secured notes and its prepetition ABL lenders. The plan contemplates the equitization of approximately $319.5 million in senior secured notes, leaving general unsecured creditors unimpaired. To fund the case and operations, the debtors have secured a $125 million senior secured superpriority asset-based DIP facility from their prepetition ABL lenders, which includes a roll-up of approximately $68.5 million in prepetition ABL obligations.

The company reports $340.7 million in assets and $436.6 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-90295.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Chapter 11 Debtors

Affiliated Debtors Chart
Source: Bondoro, Court filings

Top Unsecured Claims

Form 204 Top Unsecured Claims
Source: Bondoro, Court filings

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