Fort Worth-based Vista Proppants & Logistics LLC, a frac-sand supplier, has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Northern District of Texas.
The company said it intends to use the reorganization cases to restructure debt from its balance sheet, substantially deleveraging Vista’s capital structure and positioning the company for long-term success given the current state of energy prices.
The company said it expects to emerge from bankruptcy in 120 days.
The company also announced it has secured an $11 million debtor-in-possession credit facility from the company’s senior lenders to finance the costs and limited business operations during the restructuring process, including meeting obligations to employees, vendors and other constituencies. In a news release, the company said its senior lenders “are fully-supportive of the bankruptcy filings and expect to sponsor a plan of reorganization with Vista to facilitate a prompt exit from Chapter 11.”
Vistra is backed by two investment firms, First Reserve Corp., which focuses on energy-related investments, and Ares Capital Corp.
The voluntary chapter 11 petitions were filed in the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division. The company has retained Alvarez & Marsal North America, LLC as its Chief Restructuring Officer and Haynes and Boone, LLP as its bankruptcy counsel.