Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
C&J Energy Services Ltd. Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: August 16, 2016
Key Contacts
Back
C&J Energy files Chapter 11
C&J Energy Services Ltd., one of the largest oil field service companies, has announced that it recently filed for Chapter 11 bankruptcy protection. According to The Wall Street Journal, the firm has negotiated a $1.4 billion deal with its senior bondholders, to resolve some of the issues connected to its insolvency.
C&J Energy spirals into debt
C&J Energy is a major service provider that builds and maintains oil wells throughout North America. The company felt the downward pressure of the collapse in oil and gas prices last year. The Journal reported that, after the substantial increase in hydraulic fracking, the company was able to go public and negotiate a $2.8 billion merger with Nabors Industries Ltd. But since 2014, the company’s stock price has dropped from $32 per share to 31 cents, in line with the historic oil price decline which resulted in losses of $872.5 million last year and $428.4 million so far this year. As a result, the company defaulted on several of its loans, which led to its debt restructuring agreements with senior lenders.
Since the start of 2015, 70 oil and gas-related companies based in North America have filed for Chapter 11 bankruptcy protection.
C&J Energy’s debt reorganization deals
As part of the negotiated deal, C&J Energy will exchange all of its outstanding debt to senior lenders for 100 percent ownership in the newly-formed firm. Reuters reported that the debt-for-equity swap will include more than 50 percent of its outstanding debtholders. In the meantime, the deal will also involve $100 million in additional financing from lenders, as well as a $200 million rights offering and $100 million debtor-in-possession. C&J’s new stock issued to seniors will include seven-year warrants and six percent of common stock with a $1.55 billion fixed price.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.