Shale Support Global Holdings and its subsidiaries have filed a voluntary reorganisation under Chapter 11 of the US Bankruptcy Code.
Shale is hoping the re-organisation will be complete within 100 days and will position the company for long-term success.
During this time period, Shale will maintain ample liquidity and resources to support business and will continue providing safe, reliable and efficient services to its customers.
Additionally, Shale announced the securement of a $16.6 million debtor-in-possession credit facility (the DIP Facility) to finance working capital needs and allow business operations to continue as normal during the restructuring process including meeting obligations to employees, vendors and others.
A company spokesperson said: “Today’s Chapter 11 filings represent a significant milestone in our financial restructuring process to significantly strengthen our financial condition by reducing debt, enhancing liquidity and best positioning our company to weather the storm proactively as the market begins to recover. We are confident that this is the best path forward for Shale Support and our stakeholders.”
“On behalf of Shale Support’s board of directors and executive management team, I want to thank our employees for their continued hard work and dedication and note that we look forward to working with our customers and vendors as we continue to operate as normal. We are confident that these proceedings will allow Shale Support to emerge as a stronger partner,” the spokesperson added.
The voluntary Chapter 11 petitions were filed in the United States Bankruptcy Court for the Southern District of Texas. Shale Support Louisiana has not filed for bankruptcy. The Company has retained Gary Barton of Alvarez & Marsal as its chief restructuring officer; Greenberg Traurig, LLP as its bankruptcy counsel and Piper Jaffray Company, as its investment banker.