Expro has filed for Chapter 11 bankruptcy under its financial restructuring plans.
However, the firm said the move will not affect staff, customers or suppliers and will instead leave the company in a stronger position.
The international oilfield service firm reached an agreement with its key lenders and shareholders to eliminate its entire $1.4billion of funded debt and $80million in annual interest payments through an equity conversion, fully “deleverage its balance sheet”. The deal includes an additional “$200million equity commitment from its new shareholders”.
In order to implement this agreement and make it binding on all parties, Expro has submitted a “prepackaged” plan of reorganization under Chapter 11 of the US Bankruptcy Code.
Expro expects its restructuring to be conclude in 60 days.
Chief executive Mike Jardon said the firm was successful in carving out a strong and resilient “end goal”.
He said: “We are thrilled to have received overwhelming support from our lenders and shareholders as we work to achieve our end goal: creating a stronger financial foundation for the future. This process will allow the Company to deliver on its growth strategy, which includes our continued investment in customer-focused technology solutions that support the next generation of exploration, production, and development projects.
“There will be no interruption to our business operations and relationships, and we are communicating with all of our key stakeholders to ensure they stay informed of our progress. With the strong support of our lenders and shareholders, we are confident that our restructuring will move forward quickly and efficiently, and we greatly appreciate their support shown throughout.”
Under the plan of reorganization, Expro will be provided with access of up to $155million in debtor-in-possession financing, including bonding lines, which will provide working capital to ensure normal business operations continue during the financial restructuring process.
Expro’s legal advisors are Paul, Weiss, Rifkind, Wharton & Garrison LLP and Freshfields LLP. The Company’s financial advisor is Lazard and its restructuring advisor is Alvarez & Marsal.