C&J Energy Services filed a motion with the U.S. Bankruptcy Court requesting an order authorizing its debtors to enter into certain agreements in connection with anticipated exit financing and incur and pay related fees, indemnities and expenses.

The motion stated, “From the start, the RSA contemplated that the debtors would potentially enter into an exit financing facility to facilitate its exit from Chapter 11.

“Accordingly, the debtors engaged in a good faith, arm’s length marketing process to secure the most favorable exit facility terms available and are pleased to have arrived at a preliminary agreement with respect to exit facility terms with PNC Bank.

“The engagement letter contemplates, subject to certain conditions, including confirmation of the debtors’ plan, that PNC will fund a senior secured revolving asset-based lending credit facility in an amount of up to $100 million, the proceeds of which will be used to, among other things, fund capital expenditures and provide for the ongoing working capital needs of the debtors post-emergence.

“Significantly, pursuant to the engagement letter, the debtors have agreed, subject to the court’s approval, to pay PNC’s reasonable and necessary out-of-pocket fees and expenses related to its ongoing diligence and documentation efforts, fund an aggregate of $200,000 in deposits and indemnify PNC and its directors, officers, employees, and affiliates…Once finalized, the exit facility will greatly benefit the debtors by providing a post-emergence source of stability as the debtors seek to fully capitalize on the benefits of the deleveraging transaction contemplated by the plan.”

The court scheduled a December 5, 2016 hearing to consider the motion.