HAMILTON, Bermuda, July 20, 2016 /PRNewswire/ — C&J Energy Services Ltd. (NYSE: CJES) (“C&J” or the “Company”) today announced that it has commenced cases for a voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. The reorganization cases contemplate implementing the previously announced Restructuring Support Agreement (as amended, the “RSA”) that C&J executed with its lenders, which provides for the elimination of approximately $1.4 billion in debt from the Company’s balance sheet, substantially deleveraging C&J’s capital structure and strongly positioning the Company for long-term success. Additionally, the RSA contemplates that, subject to the satisfaction of certain conditions, the Company will issue one series of seven-year warrants to existing common stockholders, based on their pro rata share, exercisable for up to an aggregate of 6% of new common stock at a strike price of $1.55 billion. Currently, lenders that beneficially own or manage greater than 83% of the aggregate principal amount of debt outstanding under the Company’s credit facilities are parties to the RSA. The Company currently estimates that it will emerge from the Chapter 11 reorganization within approximately 130 to 180 days, and fully expects operations to continue as normal throughout the court-supervised financial restructuring process.
President, Chief Executive Officer and Chief Operating Officer Don Gawick commented, “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 proactively respond as the market begins to recover. 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 C&J and all our stakeholders. During the reorganization proceeding, all of our day-to-day operations will continue in the normal course, and we will maintain ample liquidity and resources to support our business and continue providing safe, reliable and efficient services to all of our customers. We appreciate the continued, strong support demonstrated by our lenders, which will hopefully enable us to move quickly and smoothly the restructuring process.
“On behalf of C&J’s Board of Directors and executive management team, I want to thank our employees for their continued hard work and dedication, and note that we look forward to working with our customers and vendors as we move through this process and build a strong foundation for C&J to emerge as a stronger partner.”
Additional information about the reorganization process is contained in a Current Report on Form 8-K that the Company will file with the U.S. Securities and Exchange Commission. The Company has also posted additional information about the reorganization process under the investor relations section of the Company’s website at www.cjenergy.com and has set up a toll free information line to answer questions pertaining to the restructuring, which can be accessed by dialing (866) 296-8019.
About C&J Energy Services
C&J Energy Services is a leading provider of well construction, well completions, well support and other complementary oilfield services to oil and gas exploration and production companies. As one of the largest completion and production services companies in North America, C&J offers a full, vertically integrated suite of services involved in the entire life cycle of the well, including directional drilling, cementing, hydraulic fracturing, cased-hole wireline, coiled tubing, rig services, fluids management services and other special well site services. C&J operates in most of the major oil and natural gas producing regions of the continental United States and Western Canada. For additional information about C&J, please visit www.cjenergy.com.