The Debtor was an Exploration & Production (E&P) company with drilling activity and 100+ well production in New Mexico (Delaware Basin) and Oklahoma. The investor group terminated the management team as a result questionable dealings and related litigation between the parties. The Company filed Chapter 11 bankruptcy and conducted a sale of assets through a 363 sale process.
A supplier in the Permian basin (Texas) of chemical solvents and anti-corrosion products was in default with its senior secured lender. The default was a result of misreported operating results and negative EBITDA during the Covid-19 downturn in the oil and gas industry.
This oilfield services company designed and produced a nanotechnology ceramic proppant used in oil and gas “fracking,” but the operations never achieved sufficient volume and economies of scale to reach a profitable cost structure prior to the macroeconomic downturn in that industry. Chapter 11 debtor in Houston, TX that raised approximately $150MM in equity, and at the time of filing owed more than $40MM in senior and subordinated secured debt.