Davis Polk is advising an ad hoc group of holders of senior secured notes in connection with the chapter 11 restructuring of FTS International, Inc. and certain of its subsidiaries (collectively, “FTSI”). On September 22, 2020, FTSI filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Southern District of Texas after entering into a restructuring support agreement (the “RSA”) with the ad hoc group and certain term loan lenders.

Under the terms of the RSA and the proposed prepackaged plan, the senior secured noteholders and term loan lenders will receive their pro rata share of $30.66 million in cash and 90.1% of the equity of reorganized FTSI (subject to dilution). FTSI’s existing equity holders will receive their pro rata share of 9.9% of the equity of reorganized FTSI (subject to dilution) and warrants. As of the petition date, the RSA was supported by 87.56% of the aggregate outstanding principal amount of senior secured notes and term loans.

Headquartered in Fort Worth, Texas, FTSI is an independent hydraulic fracturing service company and one of the only vertically integrated service providers of its kind in North America. They provide customized hydraulic fracturing solutions to exploration and production companies to enhance recovery rates from oil and gas wells, primarily in unconventional plays.

The Davis Polk restructuring team includes partners Donald S. Bernstein and Damian S. Schaible, counsel Jon Finelli and associate Michael Pera. The corporate team includes partner Cheryl Chan. The capital markets team includes partner John G. Crowley. The tax team includes partner Michael Farber, counsel Samuel Dimon and associate Elina Khodorkovsky. Counsel David Mollo-Christensen is providing executive compensation advice. All members of the Davis Polk team are located in the New York office.

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