Shale Support wins confirmation after compressed Chapter 11
The court confirmed the amended joint plan for Shale Support Global Holdings and seven affiliated debtors on Oct. 29, 2019, after a July 11 petition date, a Sept. 18 disclosure-statement order, an Oct. 21 voting deadline and an Oct. 25 final amended plan filing. The confirmation order overruled remaining objections, found no need to resolicit the modified plan, and approved a plan jointly proposed by the debtors and BSP Agency, LLC, allowing the frac-sand producer to exit a compressed case source filing.
At filing, Shale Support was a vertically integrated proppant supplier with 179 employees, a Picayune, Mississippi mine and drying facility with roughly 98 million tons of proven recoverable frac sand, and a Southton, Texas transload facility. The capital stack included about $116.0 million of term-loan debt and $11.6 million under the Siena revolving facility; the company blamed a more than 40% revenue-per-ton drop, failed sale and refinancing efforts, and liquidity pressure for the filing, while seeking a $16.6 million DIP tied to a 98-day emergence milestone source filing.
The confirmed plan implemented a balance-sheet restructuring: DIP lenders received exit-facility debt, term-loan and DIP lenders converted about $80 million of funded debt into new membership interests and exit-facility obligations, term lenders waived about $30 million of deficiency claims, and unsecured creditors participated in a GUC recovery process with reserves and litigation proceeds source filing.
