Nine Energy Service Navigates Chapter 11 Restructuring with Strategic Debt Coverage Plan

LiquidationKing · 2026-02-18T08:05:53+00:00

Nine Energy Service, Inc. has filed for prepackaged Chapter 11 bankruptcy to strengthen its financial position, eliminating $320 million in debt and reducing annual interest by $40 million. With secured financing for operations, the plan aims for a swift emergence while protecting international operations.

LiquidationKing

2026-02-18 08:05:53

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Nine Energy Service, Inc. (NINE), a leading oilfield solutions provider, has initiated a prepackaged Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the Southern District of Texas. This strategic restructuring aims to significantly strengthen the company’s financial position while maintaining operational continuity. The bankruptcy petition covers the company’s core operations, though activities in the U.S. and Canada remain separately structured. Management projects completion of the Chapter 11 emergence process within approximately 45 days, having already secured preliminary voting support on the restructuring plan prior to filing.

Substantial Debt Elimination and Interest Savings

The Chapter 11 restructuring plan targets the elimination of approximately $320 million in senior secured notes, translating to an annual interest expense reduction of around $40 million. This debt reduction represents a critical step in improving the company’s long-term financial sustainability and cash flow position. By removing this significant debt burden, Nine Energy positions itself to operate more efficiently post-emergence, allowing greater reinvestment in growth initiatives rather than servicing legacy obligations.

Secured Financing Framework Supporting the Restructuring

Nine Energy has secured a comprehensive financing package from its existing asset-based lending (ABL) partner. The company received a commitment for $125 million in debtor-in-possession financing to fund ongoing operations throughout the Chapter 11 process. Additionally, the ABL lender has pledged to provide a $135 million exit facility upon successful emergence from Chapter 11, ensuring adequate capital availability for the company’s transition back to standalone operations.

Operational Coverage and International Operations

The Chapter 11 filing cover encompasses the company’s primary operating structure, while the company’s business activities outside the U.S. and Canada are excluded from the petition. This structured approach allows Nine Energy to protect certain international operations while reorganizing its core domestic business, potentially offering greater operational flexibility during the restructuring period.

This announcement reflects Nine Energy’s proactive approach to addressing financial challenges while maintaining business continuity in the competitive oilfield services sector.

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