Expro files prepackaged bankruptcy under Chapter 11Company News // December 22, 2017
Oilfield services company Expro, which has reached an agreement with its lenders and shareholders to eliminate US$1.4 billion of funded debt and US$80 million in annual interest payments through an equity conversion, which will fully deleverage its balance sheet, is to file for bankruptcy.
The restructuring will provide a stronger and more sustainable capital structure to grow the business, and will be supported by an additional US$200 million equity commitment from its new shareholders.
In order to implement the agreement and make it binding on all parties, Expro has submitted a prepackaged plan of reorganization under Chapter 11 of the US Bankruptcy Code.
This legal process provides the most efficient and effective means to deliver Expro’s financial restructuring, and the Company is confident that it will be completed within 60 days.
The company said the prepackaged plan "demonstrates overwhelming" support from Expro’s lenders and shareholders for a consensual restructuring, providing a clear and expedited path to emergence.
"The process is solely focused on establishing a more sustainable capital structure and accessing growth capital. It will not impact Expro’s operations or relationships with employees, customers, business partners, or suppliers,2 said the company.