FTS International Inc. revealed that the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division has confirmed its prepackaged plan of reorganization, the company said on Nov. 5.
Under the terms of the confirmed plan, which was approved at a hearing on November 4, 2020, the company accomplished the elimination of all of its prepetition funded debt, approximately $437 million. Importantly, the confirmed plan ensures that the company’s vendors, suppliers, and customers will remain unaffected by the reorganization. The company’s existing equity holders will also receive a recovery under the confirmed plan. Additionally, on November 3, 2020, the company settled its dispute with Covia Holdings Corp.
“I am pleased to have reached an agreement with all parties involved and look forward to emerging from Chapter 11 in the next couple of weeks,” Michael Doss, CEO of FTSI, said. “The overwhelming support by all parties involved and confirmation by the court will allow FTSI to emerge from the process debt-free and in an ideal position to navigate the current environment and take advantage of future opportunities. I appreciate our customers, our vendors, and our employees for working through this process with us and am excited that FTSI will be better positioned than ever before and continue being a leader in the well completions space.”
The company anticipates finalizing the confirmed plan over the coming weeks, subject to standard and customary closing procedures and conditions. FTSI anticipates full emergence from Chapter 11 proceedings by the end of November of 2020.
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