Drilling & Services Company
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Financial Advisor
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Greg Baracato
Partner, Partners
With over 30 years of experience in business consulting, corporate management and restructuring, Greg Baracato has substantial expertise in rendering financial advisory and reorganization services on behalf of varied stakeholders in the restructuring and turnaround arena.
William Snyder
Partner, Partners
With executive and entrepreneurial experience spanning close to 40 years, William Snyder has restructured, managed, and guided a multitude of companies in a wide variety of industries.
- Renegotiated senior lender term loan paydown
- Company received liquidity under restructuring agreement
The company is a $160MM oil and gas drilling and heavy-haul moving company with operations in multiple locations. A drop in oil prices caused a reduction in rig fleet utilization, EBITDA and cash flow, which caused the company to default on its term loan and revolving line of credit. CR3 Partners was engaged as the lenders’ financial advisor to assess the company’s operations, negotiate a recapitalization plan and develop financial projections. Negotiations with the lenders resulted in favorable terms and adequate liquidity for the company to continue operations.
The Situation
- $160MM oil and gas drilling and heavy-haul moving company with operations in multiple locations
- Drop in oil prices caused a reduction in utilization of its 40-rig fleet to fewer than ten rigs
- Resulting reduction of EBITDA and cash flow led to defaults under term loan and revolving line of credit
The Work
- CR3 professionals were engaged as financial advisor to lenders for an assessment of company’s operations and to assist in negotiating an out-of-court restructuring
- Worked closely with company’s management team, investment bank, and lenders to negotiate an expedited recapitalization plan
- Developed an interim weekly cash budget and financial projection model to use in restructuring negotiations among lenders, company and investment bank
The Results
- Secured lenders received renegotiated terms for paydown of term loan and revolving line of credit
- Company received liquidity to continue operations under restructuring agreement
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