Market Pulse Archives

July 13, 2020, 7:39 a.m. EDT

Hydraulic fracking services company Hi-Crush files for bankruptcy

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Energy Select Sector SPDR ETF (XLE)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore

Shares of Hi-Crush Inc. sank 15% toward a record low in premarket trading Monday, after the Houston-based provider of proppant and logistics services for hydraulic fracturing operations said it filed for bankruptcy. The company said the bankruptcy will help implement a restructuring support agreement with its creditors holding nearly all of its outstanding 9.5% senior unsecured notes due 2026. Hi-Crush said it has received commitments for $65 million in debtor-in-possession and exit financing, as the company said it will continue to operate its business during the bankruptcy. Terms of the bankruptcy include payment of substantially all trade claims in the ordinary course, cancellation of current equity, conversion of $450 million of existing pre-petition debt into equity of the reorganized company and a $40 million rights offering for new secured convertible notes. The stock had plunged 82.7% year to date through Thursday, while the SPDR Energy Select Sector ETF /zigman2/quotes/206420077/composite XLE -0.34% has lost 40.8% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.80% has slipped 1.4%.

/zigman2/quotes/206420077/composite
US : U.S.: NYSE Arca
$ 38.20
-0.13 -0.34%
Volume: 26.51M
Aug. 11, 2020 4:00p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,333.69
-26.78 -0.80%
Volume: 2.90B
Aug. 11, 2020 5:08p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.