Expro Holdings Files Ch. 11 Bankruptcy in Texas

    On December 18, 2017, Expro Holdings US Inc. (d/b/a Umbrellastream US Inc.) (the “Debtor”) and certain of its affiliated entities[1] (collectively, the “Debtors”) filed chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas.  The Debtors provide specialized well flow management products and services in the oil and gas industry, specifically focusing on offshore, deepwater and other environments.  The Debtors cite a significant and sustained drop in oil and gas prices as the catalyst for filing chapter 11 bankruptcy.    According to the Declaration of John McAlister, the Group General Counsel and Corporate Secretary of Expro International Group Holdings Limited (the indirect parent company for each of the Debtors), the Debtors’ bankruptcy seeks to implement a consensual financial restructuring that has the support of supermajorities of both the Debtors’ secured creditors and equity holders.  HSBC Bank USA, National Association, serves as administrative agent and HSBC Corporate Trustee Company (UK) Limited serves as collateral agent for the senior secured lenders.  The Bank of New York Mellon (London Branch) serves as facility agent and HSBC Corporate Trustee Company (UK) Limited serves as the security agent for the mezzanine lenders.  Under the restructuring support agreement, (i) senior lenders will receive their pro rata share of 100% of the equity in the reorganized Debtors, (ii) the mezzanine lenders have the opportunity to receive their pro rata share of new warrants to be issued, (iii) trade and other unsecured claims will be paid in full in the ordinary course of business,[2] (iv) existing shareholders have the opportunity to receive their pro rata share of new warrants, and (v) the reorganized Debtors will raise $200 million in new capital through a backstopped rights offering open to senior lenders who have already joined or executed the restructuring support agreement.      Concurrently with their bankruptcy petitions, the Debtors filed their Disclosure Statement and Chapter 11 Plan of Reorganization.  A copy of the Declaration of John McAlister can be found by clicking here:  Download Expro Holdings – 1st Day DeclarationFor further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney.For more information on the Thompson & Knight Bankruptcy and Restructuring practice, please click here. [1] Expro Group Australia Pty Limited; Expro Holdings Australia 1 Pty Limited; Expro Holdings Australia 2 Pty Limited; Expro Do Brasil Servicos Ltda; Expro (B) Sendirian Berhad; Expro Group Canada Inc.; Expro Gulf Limited; Exploration and Production Services (Holdings) Limited; Expro Benelux Limited; Expro Eurasia Limited; Expro Holdings UK 2 Limited; Expro Holdings UK 3 Limited; Expro Holdings UK 4 Limited; Expro International Group Holdings Ltd.; Expro International Group Limited; Expro North Sea Limited; Expro Overseas Limited; Expro Resources Limited; PT Expro Indonesia; Expro International Limited; Expro Finservices Sarl; Expro Servicios S. de R.L. de C.V.; Expro Tool S. de R.L. de C.V.; Exprotech Nigeria Limited; Expro Holdings Norway AS; Expro Norway AS; Petrotech AS; Expro Overseas, Inc.; Expro International B.V.; Expro Worldwide B.V.; Petrotech B.V.; Expro Trinidad Limited; Expro Americas, LLC; Expro Holdings US Inc.; Expro Meters, Inc.; Expro US Finco LLC; Expro US Holdings, LLC.[2] The Debtors estimate the total outstanding pre-petition trade claims to be $102 million.