FTS International’s Chapter 11 Filing

Davis Polk is advising an ad hoc group of holders of senior secured notes in connection with the chapter 11 restructuring of FTS International, Inc. and certain of its subsidiaries (collectively, “FTSI”).

On September 22, 2020, FTSI filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Southern District of Texas after entering into a restructuring support agreement (the “RSA”) with the ad hoc group and certain term loan lenders.

Under the terms of the RSA and the proposed prepackaged plan, the senior secured noteholders and term loan lenders will receive their pro rata share of $30.66 million in cash and 90.1% of the equity of reorganized FTSI (subject to dilution). FTSI’s existing equity holders will receive their pro rata share of 9.9% of the equity of reorganized FTSI (subject to dilution) and warrants. As of the petition date, the RSA was supported by 87.56% of the aggregate outstanding principal amount of senior secured notes and term loans.

Headquartered in Fort Worth, Texas, FTSI is an independent hydraulic fracturing service company and one of the only vertically integrated service providers of its kind in North America. They provide customized hydraulic fracturing solutions to exploration and production companies to enhance recovery rates from oil and gas wells, primarily in unconventional plays.

The Davis Polk restructuring team included partners Donald S. Bernstein (Picture) and Damian S. Schaible, counsel Jon Finelli and associate Michael Pera. The corporate team included partner Cheryl Chan. The capital markets team included partner John G. Crowley. The tax team included partner Michael Farber, counsel Samuel Dimon and associate Elina Khodorkovsky. Counsel David Mollo-Christensen provided executive compensation advice.

Involved fees earner: Donald Bernstein – Davis Polk & Wardwell; Cheryl Chan – Davis Polk & Wardwell; John Crowley – Davis Polk & Wardwell; Samuel Dimon – Davis Polk & Wardwell; Michael Farber – Davis Polk & Wardwell; Jon Finelli – Davis Polk & Wardwell; Elina Khodorkovsky – Davis Polk & Wardwell; David Mollo-Christensen – Davis Polk & Wardwell; Michael Pera – Davis Polk & Wardwell; Damian Schaible – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: FTS International, Inc. – Ad Hoc Group of Secured Noteholders;

Author: Ambrogio Visconti