C&J Energy Services Ltd. (“C&J”)
C&J is one of the largest midstream oil service providers serving the US market. On 27 July 2016 C&J, together with certain affiliates, filed for Chapter 11 protection in the United States seeking to restructure US$1.4 billion in secured debt. At the same time, C&J also sought the protection of the Bermuda and Canadian courts through provisional liquidation and CCAA procedures respectively. KRyS Global was appointed as “soft touch” provisional liquidators to assist with the restructuring.
The estates benefited from legal stays in all key jurisdictions which provided necessary breathing room to complete the restructuring without the threat of piecemeal enforcement litigation. Early stage DIP approval allowed the companies to continue operating while negotiations continued with key stakeholders. A restructuring plan with overwhelming stakeholder support was confirmed within 6 months. The plan featured a debt-for-equity swap taking out the secured lenders, a shared recovery pool for unsecured creditors, warrant issuances to old equity, and a fully backstopped rights offering on exit.
As provisional liquidators, KRyS Global provided a “soft touch” oversight of the board as the plan was negotiated with key stakeholders, and worked with the company’s management and advisors as needed to achieve an expedited emergence from the global insolvency process.