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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