Hi-Crush Inc. announced that the U.S. Bankruptcy Court for the Southern District of Texas has confirmed its Prearranged Plan of Reorganization.
Under the terms of the Prearranged Plan, which was approved at a hearing yesterday afternoon, the company eliminated approximately $450 million of unsecured debt, reduced annual interest expense by more than $43 million and equitized certain material general unsecured claims against the company. The Prearranged Plan provides the company significant additional liquidity while minimizing operational disruptions.
“We are very pleased to have achieved this successful outcome with our noteholders and creditors,” said Robert E. Rasmus, chairman and chief executive officer of Hi-Crush. “The confirmation by the court of the Prearranged Plan will allow for the recapitalization of Hi-Crush and enable our company to continue delivering high quality services to our customers with the added benefit of a significantly improved balance sheet, thereby enhancing Hi-Crush’s financial flexibility over the near and long-term. We look forward to continuing to serve our partners across the oil and gas industry as the sector’s premier frac sand and frac sand logistics provider.”
The company anticipates finalizing the Prearranged Plan over the coming weeks, subject to standard and customary closing procedures and conditions. Hi-Crush Inc. anticipates full emergence from Chapter 11 proceedings by mid-October.