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