Hi-Crush Emerges from Chapter 11 Protection

Hi-Crush Inc of Houston, TX has announced that it has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy. Through its financial restructuring, Hi-Crush has eliminated approximately US$450 million of debt from its balance sheet, as well as more than US$76 million of annual interest expense and lease payment obligations.

Effective immediately, all existing shares of the company’s common stock were canceled pursuant to the plan, and the company issued 9,382,378 shares of new common stock pro rata to the holders of allowed claims arising under the pre-petition notes.

Additionally, the company is authorized to issue up to an additional 4.26 million shares of new common stock to holders of general unsecured claims pursuant to, and in accordance with the terms and conditions of the plan as such holders’ general unsecured claims become allowed under the plan. The new common stock will not be traded on a public exchange.

Robert E Rasmus, Hi-Crush’s CEO, said, “We are very pleased to have achieved this successful outcome with our noteholders and creditors. This confirmation by the court of the prearranged plan will allow the recapitalization of Hi-Crush, and enable our company to continue delivering high quality services to our customers with the added benefit of a significantly improved balance sheet, thereby enhancing Hi-Crush’s financial flexibility over the near and long-term.”

Volume 34, Issue 20

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