logo
Plus   Neg
Share
Email

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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Intel Corp. said it is probing into the hack of its fourth-quarter earnings report that prompted the chipmaker to release its earnings statement ahead of schedule. The company, which was scheduled to release the results after the market closed, released it before the market closing on Thursday. Google parent Alphabet decided to drop its Internet balloon project Loon that was launched with the idea of providing Internet access to rural areas and providing last mile connectivity. In a blog post, Loon CEO Alastair Westgarth said they have not found a way to get the costs low enough to build a long-term, sustainable business, despite gaining a number of interested partners along the way. American Airlines announced the launch of Flagship Cellars, its home delivery service for premium wines usually available onboard. The airline's move is said to be due to the excess wine it has amid the weakness in air travel demand following the coronavirus pandemic crisis. The company expects the new at-home wine program to generate about $40,000 to $50,000 in sales during the first quarter.
Follow RTT