Oilfield Services Provider Nine Energy Initiates Chapter 11 Restructuring to Eliminate $320M Debt

BlockchainBard · 2026-02-17T09:16:31+00:00

Nine Energy Service, Inc. has filed for a prepackaged Chapter 11 reorganization to eliminate $320 million in debt, reduce interest payments, and secure $125 million for ongoing operations, aiming to emerge within 45 days while maintaining international operations.

BlockchainBard

2026-02-17 09:16:31

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Nine Energy Service, Inc., a major oilfield solutions provider, has initiated a prepackaged Chapter 11 reorganization case in the U.S. Bankruptcy Court for the Southern District of Texas. The strategic restructuring aims to significantly strengthen the company’s financial position by removing approximately $320 million in senior secured obligations, which will reduce annual interest payments by roughly $40 million.

Financing Framework and Capital Support

The Chapter 11 process is supported by a robust financing structure designed to ensure business continuity. Nine Energy has secured a $125 million debtor-in-possession facility from its existing asset-based lender to maintain operations throughout the reorganization period. Additionally, the lender has committed to providing a $135 million exit ABL facility upon successful emergence from Chapter 11, signaling strong confidence in the company’s recovery prospects.

Accelerated Timeline and Operational Scope

The company previously began soliciting stakeholder votes on its reorganization plan before filing the formal Chapter 11 petitions, positioning it for a streamlined process. Management expects to complete the restructuring and emerge from Chapter 11 status within 45 days—a notably rapid timeline that reflects the prepackaged nature of the filing. It’s important to note that Nine Energy’s international operations across regions outside the United States and Canada remain separate from this Chapter 11 filing, ensuring continuity in those markets during the restructuring phase.

This disciplined approach to debt restructuring demonstrates how strategic use of Chapter 11 protections can enable companies to eliminate unsustainable obligations while maintaining operational stability and market presence.

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