Davis Polk is advising the administrative agent (the “Agent”) under both the Prepetition Facility and the DIP Facility (in each case, as defined below) of C&J Energy Services, Ltd. (together with certain of its affiliates, “C&J”) and working with a steering committee of Prepetition and DIP Lenders in connection with C&J’s chapter 11 bankruptcy cases (the “Chapter 11 Cases”) filed on July 20, 2016 in the United States Bankruptcy Court for the Southern District of Texas (Houston Division) (the “Bankruptcy Court”). Prior to the commencement of the Chapter 11 Cases, holders of approximately 88% in principal amount outstanding under C&J’s $1.35 billion prepetition credit agreement (the “Prepetition Facility”) agreed to a Restructuring Support Agreement, publicly filed with C&J’s 8-K on July 8, 2016 and amended on July 14, 2016 (the “RSA”). The RSA contemplates a plan of reorganization that includes, among other things, equitizing the Prepetition Facility. Under the RSA, the prepetition secured lenders will receive 100% of the new common stock issued by reorganized C&J and an opportunity to participate in a $200 million rights offering for new common stock to be issued at a discount to plan value. The RSA also provides for a $100 million delayed-draw superpriority secured debtor-in-possession financing facility (the “DIP Facility”) provided by a group of Prepetition Lenders. On July 25, 2016, the Bankruptcy Court approved the DIP Facility on an interim basis and, on July 29, 2016, the lenders funded the first DIP Facility draw of $25 million.

C&J is a provider of well construction, well completions and well services to the oil and gas industry. As one of the largest completion and production services companies in North America, C&J provides a suite of services for the entire life cycle of the well, including cementing, directional drilling, fracturing, coiled tubing, wireline, rig services, fluids management and numerous complementary services.

The Davis Polk insolvency and restructuring team includes partners Timothy Graulich and Damian S. Schaible, counsel Steven Z. Szanzer and associates Adam L. Shpeen and David Schiff. The credit team includes partner Jinsoo H. Kim and associates Jeong M. Oh, Eitan M. Goldberg, Hubert Ahn and Julian Azran. All members of the Davis Polk team are based in the New York office. 

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