Patriot Well Solutions Restructuring Information

Denver, CO (July 20th, 2020) – Patriot Well Solutions LLC (“Patriot” or the “Company”) today announced voluntary steps to restructure the business and strengthen it for the future.

  • The restructuring process is formulated to align the Company’s strong operating platform and asset portfolio most efficiently with balance sheet and contractual obligations
  • Commitments and ongoing funding in place from the Company’s current secured lender will ensure liquidity and continuity of all operations
  • All operations to continue as normal in the ordinary course of business throughout process

Patriot has taken the important step to proactively initiate a restructuring to maximize value to all stakeholders through a process that is funded by an existing secured lender that is an affiliate of our equity partner. The reset to our business will capitalize on the fundamental strength of our operating performance, safety record, personnel, and portfolio of assets. In addition, it will enhance financial flexibility for future growth and development over the near and long-term. All operations will continue as normal and without interruption.

We determined that a court-supervised process under Chapter 11 is the best way to achieve a value-maximizing transaction and to complete this process as quickly and efficiently as possible without any business interruption. This process will allow us to position our Company using the tools and protections offered under Chapter 11 of United States Bankruptcy Code.

We greatly appreciate the hard work and commitment of our employees, who remain focused on safety, quality, and efficiency in the execution of our operations during this process. We look forward to working productively with our suppliers, business partners and all stakeholders throughout this process

During this process, we plan to continue business operations throughout in the ordinary course, and we are committed to serving our customers and to doing everything we can to meet and exceed our customers’ expectations.

Patriot has obtained debtor-in-possession financing from one of the Company’s current secured lenders that is an affiliate of our majority equity holder. Their $9.4 million funding commitment will provide sufficient liquidity to fund the Company’s operations while it executes a sale process of some or all its assets under section 363 of the United States Bankruptcy Code. This lender will also serve as the stalking horse bidder for the sale.

Dragan Cicvaric, Patriot’s President and Chief Executive Officer, stated, “After a thorough evaluation of our near-term financial outlook and operational performance, Patriot’s board, management team and advisors have determined that additional financing is needed to continue its operations while pursuing an accelerated sale process to optimizing value for our lenders, employees, customers, and suppliers. Chapter 11 gives us the time, protections, and access to additional near-term financing to complete the process and determine the appropriate path forward.”

Squire Patton Boggs (US) LLP is serving as Patriot’s legal advisor; Sonoran Capital Advisors has been retained as Chief Restructuring Officer and financial advisor; and Simmons Energy is serving as the Company’s investment banker.