Forbes Energy Services Files For Bankruptcy

(RTTNews) - Forbes Energy Services Ltd. said that is has filed voluntary petitions for reorganization under chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas-Corpus Christi Division on January 22, 2017 for itself and its principal subsidiaries pursuant to the terms of the previously disclosed Restructuring Support Agreement with certain holders of the Company's 9% senior unsecured notes due 2019.

In accordance with the RSA, Forbes completed solicitation of the holders of the Senior Unsecured Notes for acceptance of the Plan on January 18, 2017. Holders of 87.14% in principal amount of the outstanding Senior Unsecured voted to accept the Plan.

Forbes noted that it has ample liquidity to support the business during the chapter 11 proceeding. Moreover, the Plan provides for a facility of $50 million to be funded by certain of the Company's bondholders to ensure that Forbes has adequate working capital after the Plan goes effective.