Basic Energy Services, Inc (NYSE:BAS) shares were up 1.59% on Wednesday to $0.587 and an additional 5.57% in after-hours trading. Share prices have been trading in a 52-week range of $0.37 to $5.16. The company has a market cap of $23.69 million at 42.76 million shares outstanding.
Basic Energy Services is a company that provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. It operates through various segments such as Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The company’s operations are managed regionally in US onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania.
In a press release yesterday, Basic Energy Services Inc announced that it has entered into a forbearance agreement with over 81% of the holders of the 7.75% senior notes due 2019 with respect to the previously announced 30-day grace period related to an $18.4 million payment of interest under these notes.
I would like to express our appreciation to our Secured Lenders and unsecured bondholders for their continued support and cooperation. The forbearance agreement and temporary waivers will provide additional time to reach a mutually acceptable financial restructuring plan that provides Basic with a sustainable capital structure that supports the company’s long-term business plan and results in long-term value generation for the benefit of our employees, customers, vendors, and all other stakeholders,” said Basic Energy Services CEO Roe Patterson.
Under this agreement, unsecured noteholders have agreed to forbear from exercising their rights and remedies, including the right to accelerate any indebtedness, through September 28, 2016 in connection with the interest payment default.
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