C&J Energy Services Exits Bankruptcy Protection with $220 Million Liquidity

by San Antonio Attorney

C&J Energy Services has finished its debt restructuring and exited from Chapter 11 bankruptcy.  It has been almost a year since its CEO passed away and the company filed for bankruptcy.

C&J planned in July 2016 to wipe out $1.4 billion in liabilities, which it has done together with providing of around $80 million in yearly interest expenditures, the company said.

C&J’s de-leveraged finances and improved liquidity status is a fine solution for the company’s stakeholders, and puts C&J in an advantageous position for business growth, according to C&J Energy Services CEO Don Gawick.

Starting Jan. 6, the company has shed off its debt through a $200 million equity rights swap and agreed to a fresh revolving credit line worth $100 million.  With its credit line and cash balance, the energy company is leaving from bankruptcy with a liquidity of over $220 million.

C&J was one of the many businesses that were besieged by the slump of oil and gas prices in the market and filed for bankruptcy.  But in the past few months a number of them have emerged from restructuring with better financial condition.  Last October Goodrich Petroleum Corp.  in Houston and SandRidge Energy Inc.  in Oklahoma came back to trading on the public markets.

When a company or person is unable to pay his or her debts or creditors, a bankruptcy protection can be filed with a bankruptcy court.  Through the bankruptcy process, the debtor can reorganize its finances so as to get a fresh start.

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