HOUSTON, July 13, 2020 - Hi-Crush Inc. (NYSE: HCR), ("Hi-Crush" or the "Company"), a fully-integrated provider of proppant logistics solutions, today announced it has entered into a Restructuring Support Agreement (the “Agreement”) with certain noteholders (the “Noteholders”), collectively owning or controlling approximately 94% of the aggregate outstanding amount of the Company’s 9.5% Senior Unsecured Notes due 2026. To implement the terms of the Agreement, the Company also announced that it has voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.
The terms of the Agreement provide for a comprehensive restructuring of the Company’s balance sheet (the “Prearranged Plan”) to be implemented through the commencement of Chapter 11 cases. The Prearranged Plan, if implemented, will result in the elimination of approximately $450 million of unsecured note debt and an ongoing reduction in annual interest expense of greater than $43 million. The Prearranged Plan also contemplates the equitization of certain material general unsecured claims against the Company. The Prearranged Plan provides the Company significant additional liquidity and minimizes operational disruptions.
During the Chapter 11 proceedings, the Company will continue to operate its business in the normal course without disruption to its vendors, customers, or employees, and will have sufficient liquidity to meet its financial obligations during the restructuring process. Through certain motions filed concurrent with the Chapter 11 cases, Hi-Crush estimates that substantially all trade vendors who will have an ongoing business relationship with the Company will be paid for goods and services in the normal course of business without interruption. Working with the Noteholders, the Company expects to complete the Chapter 11 process within 60 to 90 days.
Court filings and other information related to the court-supervised proceedings are available on a separate website administered by the Company’s claims agent, KCC, at https://www.kccllc.net/hicrush.
Additionally, the Company has set up a toll-free hotline to answer questions regarding this transaction. The hotline can be accessed by calling (866) 554-5810.