Oilfield services company Expro has completed its financial restructuring, providing the company with a more sustainable financial foundation to grow the business.
The UK-based company last year reached an agreement with its key lenders and shareholders to eliminate its entire $1.4 billion of funded debt and $80 million in annual interest payments through an equity conversion.
In order to implement this agreement, Expro in December 2017 submitted a “prepackaged” plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code.
According to its statement on Monday, February 5 the financial restructuring eliminated Expro’s entire $1.4 billion of funded debt, including the associated $80 million of annual interest payments, leaving the company with a fully deleveraged balance sheet.
Additionally, Expro has raised $200 million in equity from its new shareholders, which ensures that the company exits this process in the best possible position for long-term business development and growth, Expro said.
The Chapter 11 “prepackaged” plan of reorganization was completed in just 50 days, without any interruption to normal business operations or relationships with employees, customers, suppliers, or business partners.
Mike Jardon, Expro’s Chief Executive Officer, commented: “From the outset, our goal has been to deliver a strong capital structure from which to grow our business.”
Jardon added: “As the industry shows signs of increased activity this year, this has been an important milestone to achieve, quickly and efficiently. I’d like to thank everyone who has supported such a positive outcome, without any interruption to our business or stakeholders.”