Nine Energy Service files for Chapter 11

April 2026 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

April 2026 Issue

Nine Energy Service, a US‑based onshore completion solutions provider, has filed for voluntary Chapter 11 protection in the US Bankruptcy Court for the Southern District of Texas. The decision follows sustained volatility in the oil and gas sector and a capital structure burdened by high‑coupon secured debt. Its US and Canadian subsidiaries are included in the filing while international operations remain outside the process. The company’s petition reports total assets of approximately $340.7m and liabilities of about $436.6m, reflecting a balance sheet weakened by industry pressures and legacy debt obligations.

The Chapter 11 filing will enable Nine to implement a prepackaged restructuring plan developed with substantial creditor support. The plan is designed to eliminate roughly $320m of senior secured notes, which the company expects will reduce annual interest expenses by about $40m. Recent court filings indicate that the restructuring is centred on an equitisation of the secured notes. All existing common equity is expected to be cancelled with new equity issued solely to holders of the 13 percent senior secured notes due in 2028.

Nine continues to operate without interruption during the court‑supervised process. Management has emphasised the intention to maintain service quality for customers and stability for employees. The company has secured a $125m debtor in possession financing facility from its existing asset‑based lender, which will provide ongoing liquidity and is expected to convert into a $135m exit asset‑based facility when Nine emerges from Chapter 11. The financing structure includes customary borrowing base criteria intended to ensure sufficient working capital throughout the restructuring period.

In its initial filings, the company also submitted a series of customary motions to support its ordinary operations. These motions are intended to allow the continued payment of employees and the maintenance of benefits. The company also sought authority to pay vendors for goods and services supplied before and after the petition date, reflecting an effort to minimise commercial disruption and preserve longstanding supply relationships.

Ann Fox, president and chief executive of Nine Energy Service, reaffirmed the company’s strategic priorities. “We are confident that entering into this agreement will enable us to stay focused on what matters most – supplying the teams, the tools and the technology to ensure success for our customers, safely and efficiently,” she said. She added that the restructuring represents an important step toward long term financial stability.

Since its formation in 2013 through the merger of three SCF Partners portfolio companies, Nine has expanded through targeted acquisitions and now operates across all major onshore basins in the US and Canada. The company specialises in downhole solutions for preparing horizontal multistage wells and continues to serve a broad customer base despite the restructuring process.

Legal advisers to Nine include Kirkland & Ellis LLP and Kane Russell Coleman Logan PC. Moelis & Company serves as investment banker and FTI Consulting acts as financial and communications adviser. Certain noteholders are advised by Milbank LLP with Houlihan Lokey as investment banker, and the asset‑based lender is represented by Paul Hastings LLP.

The company expects to emerge from Chapter 11 within approximately 45 days of the 1 February 2026 filing. Court documents state that the restructuring support agreement includes milestones for plan confirmation and emergence. If executed as intended, the recapitalised business will operate with a materially strengthened balance sheet, improved liquidity and a more sustainable capital structure aligned with current market conditions.

“We look forward to emerging from the Chapter 11 process with a healthier financial foundation, well‑positioned to offer comprehensive well solutions for many years to come,” said Ms Fox.

Nine’s restructuring marks a pivotal moment, offering a realistic opportunity to stabilise operations, rebuild financial resilience and strengthen its competitive position as industry conditions continue to evolve.

Fraser Tennant