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Hi-Crush Files For Chapter 11 Bankruptcy Protection - Quick Facts

Logistics solutions provider Hi-Crush Inc. (HCR) announced Monday that it has voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.

Hi-Crush has also entered into a Restructuring Support Agreement (RSA) with certain noteholders, collectively owning or controlling approximately 94 percent of the aggregate outstanding amount of the Company's 9.5% Senior Unsecured Notes due 2026.

The terms of the Agreement provide for a comprehensive restructuring of the Company's balance sheet to be implemented through the commencement of Chapter 11 cases.

The restructuring of the balance sheet, if implemented, will result in the elimination of approximately $450 million of unsecured note debt and an ongoing reduction in annual interest expense of greater than $43 million.

It also contemplates the equitization of certain material general unsecured claims against the Company. It provides the Company significant additional liquidity and minimizes operational disruptions.

During the Chapter 11 proceedings, the Company will continue to operate its business in the normal course without disruption to its vendors, customers, or employees, and will have sufficient liquidity to meet its financial obligations during the restructuring process.

Working with the Noteholders, the Company expects to complete the Chapter 11 process within 60 to 90 days.

In addition, the Company has received commitments from its various pre-petition lenders for $65 million in Debtor-In-Possession and exit financing, subject to typical and customary terms, which will be used to meet working capital needs during the pendency of the case and long-term capital needs post emergence.

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