Troubled Nuverra files for chapter 11 restructuring

Published April 20th, 2017

Oilfield water services firm Nuverra Environmental Solutions reported a 57% decline in full-year revenues last Friday, just days after announcing a chapter 11 filing which aims to deleverage its balance sheet by converting a portion of outstanding debt into new equity.

The former Heckmann Corporation has been torpedoed by the downturn in global oil prices, culminating in its delisting from the New York Stock Exchange last year. The firm reported a net loss of $167.6 million on revenues of $152.2 million for 2016, driven in part by lower drilling and completion activities.

The restructuring support agreement which forms the basis for the chapter 11 filing aims to bring about “a comprehensive recapitalization”, based on an agreement with holders of more than 80% of Nuverra’s 2021 notes, who will see their bonds converted into common stock. Bondholders will also be eligible to participate in a $150 million rights offering.