Francis Drilling Fluids Bankruptcy Filing Moves Forward
Nov 09, 2018 09:24AM
● By Flint Zerangue, Sr.
On September 29, 2018, Lafayette-based Francis' Drilling Fluids, Ltd. (FDF), and it’s two affiliated debtors FDF Resources Holdings LLC, and Francis Logistics LLC filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.
Under Chapter 11 bankruptcy, FDF will be able to negotiate with its creditors to restructure debt in a way that is more manageable without necessarily having to sell assets, thus allowing them to stay operational. Had the firm chosen to file under the Chapter 7 bankruptcy rule, company assets would have been liquidated to pay company debt.
According to court filings, FDF has unsecured debt in access of $300 million. However, under a court-structured operating agreement, the company is beginning to see positive cash flow signs.
Currently, FDF has multiple hearings scheduled for November 2018, February 2019, and April 2019, to further settle their cases.
Since the 2014 downturn in the energy sector, many U.S. oil and gas related companies have struggled to stay profitable. FDF offers fluid services, transportation, cleaning, rental, and technical services.
*See attached court filing.