HOUSTON, Sept. 24, 2020 /PRNewswire/ -- Hi-Crush Inc. (OTCMKTS: HCRSQ), ("Hi-Crush" or the "Company"), a fully-integrated provider of proppant logistics solutions, today announced that the U.S. Bankruptcy Court for the Southern District of Texas has confirmed its Prearranged Plan of Reorganization (the "Prearranged Plan").
Under the terms of the Prearranged Plan, which was approved at a hearing yesterday afternoon, the Company eliminates approximately $450 million of unsecured debt, reduces annual interest expense by more than $43 million, and equitizes certain material general unsecured claims against the Company. The Prearranged Plan provides the Company significant additional liquidity while minimizing operational disruptions.
"We are very pleased to have achieved this successful outcome with our noteholders and creditors," said Mr. Robert E. Rasmus, Chairman and Chief Executive Officer of Hi-Crush. "The confirmation by the court of the Prearranged Plan will allow for the recapitalization of Hi-Crush, and enable our company to continue delivering high quality services to our customers with the added benefit of a significantly improved balance sheet, thereby enhancing Hi-Crush's financial flexibility over the near and long-term. We look forward to continuing to serve our partners across the oil and gas industry as the sector's premier frac sand and frac sand logistics provider."
The Company anticipates finalizing the Prearranged Plan over the coming weeks, subject to standard and customary closing procedures and conditions. Hi-Crush Inc. anticipates full emergence from Chapter 11 proceedings by mid-October.
Lazard is acting as financial advisor, Latham & Watkins LLP is acting as legal counsel, and Alvarez & Marsal is acting as restructuring advisor to Hi-Crush Inc. in connection with the Prearranged Plan. Moelis & Company is acting as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison is acting as legal advisor to the Noteholders.
This press release does not constitute an offer to sell or purchase any securities, which would be made only pursuant to definitive documents and an applicable exemption from the Securities Act of 1933, as amended.
Some of the information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, and contain projections of results of operations or of financial condition, or forecasts of future events. Words such as "may," "should," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "hope," "plan," "estimate," "anticipate," "could," "believe," "project," "budget," "potential," "likely," or "continue," and similar expressions are used to identify forward-looking statements. They can be affected by assumptions used or by known or unknown risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Hi-Crush's reports filed with the Securities and Exchange Commission (the "SEC"), including those described under Item 1A of Hi-Crush's Form 10-K for the year ended December 31, 2019 and any subsequently filed 10-Q. Actual results may vary materially. You are cautioned not to place undue reliance on any forward-looking statements. You should also understand that it is not possible to predict or identify all such factors and should not consider the risk factors in our reports filed with the SEC or the following list to be a complete statement of all potential risks and uncertainties. Factors that could cause our actual results to differ materially from the results contemplated by such forward looking statements include: the volume of frac sand we are able to sell; the price at which we are able to sell frac sand; the outcome of any pending litigation, claims or assessments, including unasserted claims; changes in the price and availability of natural gas or electricity; changes in prevailing economic conditions; difficulty collecting receivables. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. Hi-Crush's forward-looking statements speak only as of the date made and Hi-Crush undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
About Hi-Crush Inc.
Hi-Crush Inc. is a fully-integrated provider of proppant and logistics services for hydraulic fracturing operations, offering frac sand production, advanced wellsite storage systems, flexible last mile services, and innovative software for real-time visibility and management across the entire supply chain. Our strategic suite of solutions provides operators and service companies in all major U.S. oil and gas basins with the ability to build safety, reliability and efficiency into every completion.