Nine Energy Service Files for Chapter 11, Plans to Cancel Existing Common Stock

summarizeSummary

Nine Energy Service, Inc. and certain subsidiaries have filed for voluntary Chapter 11 bankruptcy to implement a prepackaged plan of reorganization. This comprehensive restructuring will result in the cancellation of all existing common stock for no consideration, leading to a complete loss for current shareholders. The plan is supported by over 70% of Senior Secured Noteholders and 100% of Prepetition ABL Lenders, aiming for a swift emergence within 45 days. The company has secured a $125 million debtor-in-possession (DIP) financing facility, which will convert into a $135 million exit asset-based loan (ABL) facility upon emergence, providing crucial liquidity. General unsecured claims are expected to be unimpaired. This filing marks a fundamental shift in the company's capital structure, prioritizing debt holders over existing equity.

check_boxKey Events

• Voluntary Chapter 11 Filing

  Nine Energy Service, Inc. and certain subsidiaries filed voluntary petitions under Chapter 11 of the Bankruptcy Code on February 1, 2026, to implement a prepackaged plan of reorganization.

• Existing Common Stock Cancellation

  The plan contemplates the cancellation of all existing common stock for no consideration, resulting in a complete loss for current shareholders.

• Debt-for-Equity Swap for Secured Notes

  Holders of Senior Secured Notes Claims will receive 100% of the new common equity interests in the reorganized company, subject to dilution from a management incentive plan.

• New Financing Secured

  The company has secured a $125 million debtor-in-possession (DIP) asset-based loan (ABL) facility, which will convert into a $135 million exit ABL facility upon emergence, providing essential liquidity.

auto_awesomeAnalysis

Nine Energy Service, Inc. and certain subsidiaries have filed for voluntary Chapter 11 bankruptcy to implement a prepackaged plan of reorganization. This comprehensive restructuring will result in the cancellation of all existing common stock for no consideration, leading to a complete loss for current shareholders. The plan is supported by over 70% of Senior Secured Noteholders and 100% of Prepetition ABL Lenders, aiming for a swift emergence within 45 days. The company has secured a $125 million debtor-in-possession (DIP) financing facility, which will convert into a $135 million exit asset-based loan (ABL) facility upon emergence, providing crucial liquidity. General unsecured claims are expected to be unimpaired. This filing marks a fundamental shift in the company's capital structure, prioritizing debt holders over existing equity.