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
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Author: George McGowan
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
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.