Nine Energy Service Pursues Prepackaged Chapter 11 Restructuring to Slash Debt Burden

Nine Energy Service, Inc., a provider of comprehensive oilfield solutions, has initiated a structured Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the Southern District of Texas. The move represents a strategic effort to streamline the company’s capital structure and significantly reduce its financial obligations. This prepackaged restructuring approach allows the company to operate with greater financial flexibility while completing the reorganization process.

Strategic Debt Elimination and Annual Interest Reduction

The restructuring plan targets the removal of approximately $320 million in senior secured notes, a move that will substantially decrease the company’s debt service burden. By eliminating this considerable debt load, Nine Energy projects annual interest expense savings of around $40 million—a meaningful reduction that will improve cash flow and financial sustainability. The company’s leadership has already begun advancing the restructuring plan through preliminary voting procedures, positioning the organization for a swift emergence from bankruptcy protection.

Comprehensive Financing Framework During Restructuring

To maintain uninterrupted operations throughout the Chapter 11 process, Nine Energy has secured a commitment for $125 million in debtor-in-possession (DIP) financing from its existing asset-based lending (ABL) provider. This financing ensures the company can continue serving customers and managing operations without disruption. Additionally, the same ABL lender has pledged an exit facility of $135 million, which will support Nine Energy upon its emergence from Chapter 11 and provide stability as the company transitions back to normal operations.

Timeline and Geographic Scope

Nine Energy expects to navigate the entire restructuring process and exit Chapter 11 within a 45-day timeframe, demonstrating the efficiency of the prepackaged filing approach. It is important to note that the company’s international operations in regions outside the United States and Canada remain outside the scope of this bankruptcy filing, allowing those business segments to continue uninterrupted.

The restructuring positions Nine Energy to emerge as a leaner, more efficient organization with substantially reduced debt obligations and improved financial metrics—critical advantages in a competitive oilfield services market.