Expro Files for Chapter 11 Bankruptcy

Oilfield services company, Expro, has filed for Chapter 11 bankruptcy as part of 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.

According to the Expro, this should 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. Expro said that this legal process, which could be completed within 60 days, provides the most efficient and effective means to deliver the company’s financial restructuring.

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, the company explained.

Mike Jardon, Expro’s chief executive officer, said : “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.

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