Vista Proppants and Logistics and its subsidiaries commenced cases for a voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division. The company intends to use the reorganization cases to restructure debt from its balance sheet and deleverage its capital structure. The company currently estimates that it will emerge from the Chapter 11 reorganization within approximately 120 days and fully expects to operate as normal when the oil and gas industry rebounds.
The company secured an $11 million debtor-in-possession credit facility from its senior lenders to finance the costs and limited business operations during the restructuring process, including meeting obligations to employees, vendors and other constituencies. According to documents filed with the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division, Ares Capital will serve as administrative agent on a debtor-in-possession credit agreement for Vista Proppants and Logistics. The company’s senior lenders are fully-supportive of the bankruptcy filings and expect to sponsor a plan of reorganization with Vista to facilitate a prompt exit from Chapter 11.
“Today’s Chapter 11 filings represent a significant milestone in our financial restructuring process to significantly strengthen our financial condition by reducing debt, enhancing liquidity and best positioning our company to weather the storm and proactively respond when the market begins to recover,” Kristin Whitley Smith, CFO of Vista Proppants and Logistics, said. “After thoroughly evaluating our options and strategic alternatives with our advisors and board of directors, we are confident that this is the best path forward for Vista and our stakeholders. During the reorganization proceeding, we will continue with limited day-to-day operations until an industry rebound, and we will maintain ample liquidity and resources to support our business. We appreciate the continued, strong support demonstrated by our lenders, which should enable us to move quickly and smoothly through the restructuring process and emerge as a stronger long-term competitor.”
Alvarez & Marsal North America is serving as chief restructuring officer and Haynes and Boone is acting as bankruptcy counsel for Vista Proppants and Logistics.
Vista Proppants and Logistics is an in-basin provider of frac sand solutions for oil and gas well completions in the oil and gas regions of the United States, including the Permian Basin and Eagle Ford Shale.