C&J Energy Services Inc. (C&J) is a large public fracking service provider specializing in well construction, completions and services. C&J experienced a period of rapid growth over the past 10-12 years as horizontal unconventional drilling of the shale formations became more prevalent. However, their 2015 acquisition of a competitor’s completion services business left the company with a significant amount of debt that coincided with a severe drop in oil prices – leading C&J to file for Chapter 11 bankruptcy in mid-2016.
Because of Carl Marks Advisors’ expertise working with legal counsel and creditors to develop favorable, outcome-focused financial solutions for companies going through in-court restructurings, as well as their deep knowledge of the oilfield industry and relevant experience working on transactions involving fracking service companies, Carl Marks Advisors was engaged by C&J to represent the unsecured creditors committee. The objective was to recover maximum value for them in the restructuring.