Stallion Oilfield Services emerges from pre-packaged bankruptcy

By Caroline Salls

Pittsburgh, Feb. 3 - Stallion Oilfield Services Ltd.'s pre-packaged plan of reorganization took effect on Tuesday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Jan. 12.

As previously reported, the company expected to eliminate about $515 million of its unsecured debt, as well as $26 million of interest through its restructuring.

Specifically, Stallion said the debt reduction would reduce annual cash interest costs by roughly $43 million.

Under the plan:

• The company's secured lenders will receive $33 million in principal payments, reducing Stallion's obligations outstanding under its secured credit agreement;

• A total of $258 million outstanding under the company's unsecured bridge loan agreement and $283 million outstanding on its 9¾% unsecured notes due Feb. 1, 2015 will be converted into 98% of the common equity in the reorganized Stallion; and

• The company's existing equityholders will receive 2% of the common equity and warrants to purchase 1% of the common equity in reorganized Stallion.

Stallion Oilfield, a Houston-based provider of well-site services, filed for bankruptcy on Oct. 19. Its Chapter 11 case number is 09-13562.

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