Nuverra Environmental Solutions entered into a privately negotiated restructuring support agreement with holders of more than 80% of the company’s unsecured senior notes to initiate a proposed debt restructuring plan intended to improve liquidity, defer cash interest expense and preserve value for common stock shareholders.

According to an 8-K SEC filing, Wells Fargo is serving as agent for the lender group in the transaction.

Nuverra took this action in response to the current low commodity price environment for crude oil and natural gas, which has significantly impacted the company’s revenues and liquidity as customer activities have dramatically slowed.

Mark D. Johnsrud, chairman of the board of directors and CEO, said, “We recognize that financial flexibility is essential to managing through prolonged commodity price headwinds and believe that pursuing the proposed Restructuring now will enhance our ability to operate from a stronger position in the future as we continue to serve our customers. We have worked diligently to negotiate an amicable, out-of-court agreement that will provide the Company additional liquidity going forward. We appreciate the support of our noteholders and our banks through this process.”