Francis Drilling Fluids

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

Role(s)

  • CRO

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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Overview

  • Energy
  • Bankruptcy Advisory

Engagement Team