Aberdeen, Scotland, December 18, 2017 – Leading international oilfield services company, Expro, announced today the next step in its financial restructuring. As previously disclosed, the Company has reached an agreement with its key lenders and shareholders to eliminate its entire $1.4 billion of funded debt and $80 million in annual interest payments through an equity conversion, which will fully deleverage its balance sheet. This will provide a stronger and more sustainable capital structure to grow the business, and will be supported by an additional $200 million equity commitment from its new shareholders.
In order to implement this agreement and make it binding on all parties, Expro has submitted a “prepackaged” plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. This legal process provides the most efficient and effective means to deliver Expro’s financial restructuring, and the Company is confident that it will be completed within 60 days.
An important milestone, the “prepackaged” plan demonstrates overwhelming support from Expro’s lenders and shareholders for a consensual restructuring, providing a clear and expedited path to emergence. The process is solely focused on establishing a more sustainable capital structure and accessing growth capital—it will not impact Expro’s operations or relationships with employees, customers, business partners, or suppliers.
Mike Jardon, Expro’s Chief Executive Officer, commented:
“We are thrilled to have received overwhelming support from our lenders and shareholders as we work to achieve our end goal: creating a stronger financial foundation for the future. This process will allow the Company to deliver on its growth strategy, which includes our continued investment in customer-focused technology solutions that support the next generation of exploration, production, and development projects.
“There will be no interruption to our business operations and relationships, and we are communicating with all of our key stakeholders to ensure they stay informed of our progress. With the strong support of our lenders and shareholders, we are confident that our restructuring will move forward quickly and efficiently, and we greatly appreciate their support shown throughout.”
Operations to continue as usual with new financing commitments
Under the plan of reorganization, Expro will be provided with access of up to $155 million in debtor-in-possession financing, including bonding lines, which will provide working capital to ensure normal business operations continue during the financial restructuring process.
Expro has made customary filings with the Court, including first day motions, to help ensure a smooth transition into this legal process. The motions are expected to be addressed by the Court promptly following the filing.
Expro’s legal advisors are Paul, Weiss, Rifkind, Wharton & Garrison LLP and Freshfields LLP. The Company’s financial advisor is Lazard and its restructuring advisor is Alvarez & Marsal.
Information about Expro’s restructuring is available at www.exprogroup.com/finrestructuring. Court filings and claims information are available at https://cases.primeclerk.com/expro. Information about the restructuring for suppliers is also available toll free at (844) 205-4334 or +1 (917) 606-6438 for callers from outside the U.S. and Canada.
Expro’s mission is well flow management. We provide services and products that measure, improve, control, and process flow from high-value oil and gas wells, from exploration and appraisal through to mature field production optimisation and enhancement.
For more information, please visit: www.exprogroup.com/about-us.
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