Forbes Energy Services Announces Completion of Successful Restructuring Process

4/18/17

ALICE, Texas, April 17, 2017 (GLOBE NEWSWIRE) -- Forbes Energy Services Ltd. today announced that the plan of reorganization under Chapter 11 of the United States Bankruptcy Code of Forbes and its domestic subsidiaries became effective on April 13, 2017. As previously announced, the Plan was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas-Corpus Christi Division on March 29, 2017.

The Debtors have emerged from a successful restructuring process with a net reduction in their debt of approximately $260 million. On the Effective Date, all prior equity interests of Forbes were extinguished and a new class of common stock was created. Also on the Effective Date, all of Forbes' 9% senior notes due 2019 (the "Senior Notes") were cancelled, and each holder of the Senior Notes received such holder's pro rata share of $20 million in cash and 100% of the new common stock of reorganized Forbes ("New Common Stock"), subject to dilution only as a result of the shares of New Common Stock issued or available for issuance in connection with a management incentive plan adopted on the Effective Date (as described below). The Company has applied to have its New Common Stock (CUSIP number 345143 200) designated for trading on the OTCQB or OTCQX marketplaces. As soon as final approval for either such platform occurs, the Company will announce details of the commencement of trading on such platform.

Other highlights from the restructuring include the following:

New Loan and Security Agreement

On the Effective Date, the Debtors entered into a new loan and security agreement (the "New Loan Agreement"), with certain financial institutions and Wilmington Trust, National Association, as agent. The New Loan Agreement provides for a term loan of $50 million with a stated maturity date of April 13, 2021.

New Letter of Credit Facility

On the Effective Date, the outstanding principal balance of $15 million plus outstanding interest and fees under the Company's prior loan and security agreement dated as of September 9, 2011 (the "Prior Loan Agreement") with Regions Bank ("Regions") was paid off and the Prior Loan Agreement was terminated. Also on the Effective Date, the Debtors entered into a letter of credit and bank products facility with Regions to cover the letters of credit and certain bank product obligations, principally related to Company credit cards, then outstanding under the Prior Loan Agreement.

For more information, please see our Current Report on Form 8-K anticipated to be filed as early as April 18, 2017.

About Forbes Energy

Forbes Energy is an independent oilfield services contractor that provides a broad range of drilling-related and production-related services to oil and natural gas companies, primarily onshore in Texas and Pennsylvania. More information on the Company can be found by visiting www.forbesenergyservices.com.

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