Forbes Energy Services filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas-Corpus Christi Division on January 22, 2017 for itself and its principal subsidiaries pursuant to the terms of the previously disclosed Restructuring Support Agreement (the RSA) with certain holders of the company’s 9% senior unsecured notes due 2019.
The Chapter 11 filing contemplates the reorganization of the debtors pursuant to a prepackaged plan of reorganization. In accordance with the RSA, Forbes completed solicitation of the holders of the senior unsecured notes for acceptance of the plan on January 18, 2017. Holders of 87.14% in principal amount of the outstanding senior unsecured voted to accept the plan.
The company will continue to operate in the ordinary course of business during the proceeding and has filed various “first day” motions seeking approval of relief so as to operate without impact or interruption to Forbes’ valued employees, customers, vendors and other important parties.
Principal terms of the plan, among others, are summarized below:
Pachulski Stang Ziehl & Jones is acting as legal restructuring counsel, Winstead is acting as corporate and securities counsel, and Alvarez & Marsal North America and Jefferies are acting as financial advisors for the company. Fried, Frank, Harris, Shriver & Jacobson is acting as legal counsel, and FTI Consulting is acting as financial advisor to the supporting noteholders.
Forbes Energy is an independent oilfield services contractor that provides a broad range of drilling-related and production-related services to oil and natural gas companies, primarily onshore in Texas and Pennsylvania.
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