Texas: Oilfield services firm BJ Services filed for Chapter 11 bankruptcy protection early yesterday, following a severe cut in demand and cash crunch due to the coronavirus pandemic.
The company, which offers hydraulic fracturing of shale wells, said it was in discussions with bidders for sale of its cementing business and portions of its fracking operations.
“Severe downturn in activity and subsequent lack of liquidity resulted in an unmanageable capital structure, ” chief executive officer Warren Zemlak said.
He added that BJ Services was working with its lenders to get liquidity to fund the sale.
The fracking company, which filed for Chapter 11 in the bankruptcy court in southern district of Texas, listed assets and liabilities in the range of US$500mil to US$1bil.
BJ services, which operates in shale basins in Canada, said it would file seeking protection under the Companies’ Creditors Arrangement Act for an orderly wind-down of operations in the country.
Oilfield service giant Baker Hughes Co closed a US$6.8bil deal to buy the company in 2010. — Reuters
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