Francis' Drilling Fluids

Francis' Drilling Fluids

Roles
Financial Advisor, Chief Restructuring Officer
  • Conducted 363-sale process, CRO
  • Payment in full to lenders
  • Continued employment of all employees

The $100MM energy services company with over 500 employees and operations in seven states. The company implemented various cost savings initiatives, but cash flow still could not support its debt structure, and the company was unable to make monthly principal and interest payments. CR3 was engaged as the CRO to manage the entirety of an orderly and expedited Chapter 11 filing and 363-sale process. The prior private equity sponsor came out as the successful stalking horse bidder which resulted in payment in full to the secured lenders, assumption of substantially all the existing contracts and assets, and continued employment of all employees.

The Situation

  • $100MM energy services company with over 500 employees and operations in seven states
  • Company affected by sustained downturn in the oil and gas industry and the reduction in activity of several significant customers
  • Implemented various cost savings initiatives of over $100,000, but cash flow did not support debt structure, and company was unable to make monthly principal and interest payments

The Work

  • CR3 engaged as CRO to manage entirety of an orderly Chapter 11 filing and 363 sale process
  • Coordinated restructuring process with the management team, investment bank, lenders, private equity owners and unsecured creditors
  • Led expedited sales process negotiations with secured lenders and use of cash collateral
  • Implemented weekly cash collateral budget
  • Provided court testimony
  • Closed sale within three months of filing Chapter 11

The Results

  • Prior private equity sponsors were the successful stalking horse bidder in the 363-sale process resulting in:
  • Payment in full to the secured lenders
  • Assumption of substantially all existing contracts, and assets
  • Continued employment of all employees

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