OFS International receives court confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Dec. 21 – OFS International, LLC’s Chapter 11 plan was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas, according to an order filed Monday.

The plan will be implemented with funds available from a $14 million three-year term loan facility with Briar Capital, secured by the debtors’ real estate; a new $15 million three-year revolving credit facility and $3 million three-year term loan with FGI Worldwide LLC, secured by the debtors’ non-real estate assets; available cash on hand as a result of the debtors’ earlier-than-projected payoff of the debtor-in-possession loan; the new value contribution, which is which is $350,000 in cash to be transferred by Konstantin Semerikov, the president and chief executive officer of OFS, to the debtors on the effective date; and future revenues generated by the reorganized debtors’ business operations.

Under the plan, the holder of the debtor-in-possession facility will receive a cash payment equal to the remaining amount of its claim.

The holders of the PAO TMK secured claim will have an allowed secured claim in the amount of $17.6 million, which will be paid in cash in full.

Secured tax claims will be paid in full in cash.

Holders of secured equipment claims will have their claims reinstated or receive a cash payment equal to the allowed amount of their claims.

Holders of priority claims will receive payment in full in cash.

The PPP claim will be reinstated.

Holders of convenience claims will receive payment in full in cash.

Holders of general unsecured claims will receive their pro rata distribution of the initial general unsecured creditors distribution, which is $1.25 million. They will also receive plan payments in the amount of $2.5 million with interest accruing from the effective date at an interest rate of 5% per annum, amortized over 36 months, with the first payment due no later than seven months after the effective date and subsequent payments to be made quarterly after that.

In exchange for the new value contribution, all interests will be reinstated.

The Houston-based company provides oil company tubular goods and services. The company filed bankruptcy on May 31, 2021 under Chapter 11 case number 21-31784.

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