Equify Financial and Wilks Brothers will provide $15 million debtor-in-possession financing to CARBO Ceramics as part of a debt-for-equity exchange pursuant to a plan of reorganization in a Chapter 11 bankruptcy case. To facilitate the agreement and effectuate the transaction, CARBO Ceramics initiated a voluntary Chapter 11 process in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.
“Like many companies with a significant concentration in the oil and gas industry, we have felt the impact of the challenging business environment and, in response, have worked diligently to strengthen our overall financial foundation,” Gary Kolstad, chairman and CEO of CARBO Ceramics, said. “While CARBO has undoubtedly made progress in our transformation strategy, we ultimately expect these headwinds to persist. Accordingly, we are pleased to reach an agreement with the Wilks Brothers. We are excited by their belief in the promise of CARBO’s business and their commitment to our future. We are confident that, under their ownership and investment, we will be better positioned to maximize value, realize the potential of CARBO and serve our customers as we move forward.”
CARBO Ceramics is a global technology company that provides products and services to the oil and gas, industrial, agricultural and environmental markets.
“We have long believed in the underlying strength of CARBO’s business, as exemplified by our multi-year relationship with the company,” Matt Wilks of Wilks Brothers, said. “This transaction will allow us to invest in the future of CARBO as we pursue opportunities to unlock value and support growth.”