Hi-Crush pre-packaged plan of reorganization effective as of Friday

By Sarah Lizee

Olympia, Wash., Oct. 9 – Hi-Crush Inc.’s pre-packaged plan of reorganization took effect on Oct. 9, and the company emerged from bankruptcy having eliminated about $450 million of debt from its balance sheet, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas and a news release.

The plan was confirmed on Sept. 23, as previously reported.

The company also said it has eliminated more than $76 million of annual interest expense and lease payment obligations.

Hi-Crush filed bankruptcy to implement a restructuring support agreement reached with holders owning or controlling 94% of its outstanding 9½% senior notes due 2026.

The plan also calls for the equitization of some significant general unsecured claims, provides additional liquidity and minimizes operational disruptions.

Substantially all go-forward trade claims will be paid in the ordinary course.

Current equity was canceled under the plan.

The plan also provides for a $40 million rights offering for new secured convertible notes.

The rights offering will be backstopped by some consenting creditors or their affiliates.

Debtor-in-possession term loan claims were paid in full in cash from the proceeds of the rights offering.

Effective Friday, Hi-Crush entered into a new $25 million senior secured asset-based loan.

The company said its post-emergence cash balance is approximately $35 million.

Hi-Crush is a Houston-based provider of proppant and logistics solutions to the oil and gas industry. The company filed bankruptcy on July 12 under Chapter 11 case number 20-33495.

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