Basic Energy Services Inc. continues its financial restructuring plan as the Fort Worth firm prepares for further negotiations regarding a deleveraging transaction.
The move follows the company’s Sept. 14 entry into a forbearance agreement with more than 81 percent of holders of the 7.75 percent senior notes due in 2019. The action also follows the previously announced 30-day grace period related to an $18.4 million interest payment under the 2019 notes.
“We look forward to continuing our restructuring discussions with our secured lenders and unsecured bondholders during the extension period, and I am grateful to our creditors for their continued support and cooperation,” said president and CEO Roe Patterson, commenting in a news release.
The forbearance agreement sees the unsecured noteholders agree to refrain from exercising their right to accelerate any indebtedness through Sept. 28, 2016 in connection with the interest payment default. Meanwhile, the firm’s secured lenders agreed to provide temporary waivers under the term loan related, in part, to the missed interest payment.
“The extension of the forbearance and temporary waivers will provide the time we need to accomplish a mutually acceptable financial restructuring plan that provides Basic with a sustainable capital structure that supports the company’s long-term business plan and results in long-term value generation for the benefit of our employees, customers, vendors and all other stakeholders,” Patterson said.
Basic Energy Services, which provides oil and gas well-site services, employs more than 3,400 workers in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain and Appalachian regions. More information is available at www.basicenergyservices.com.