BJ Services Chapter 11 plan calls for winddown of company businesses

By Caroline Salls

Pittsburgh, Sept. 8 – BJ Services, LLC filed a combined Chapter 11 plan and disclosure statement Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan calls for a liquidation of each of the BJ Services debtors and their estates and provides for the creation of a liquidating trust and appointment of a liquidating trustee to wind down the company’s businesses and affairs, pay and reconcile claims and administer the plan.

Priority claims will be paid in full in cash.

Holders of pre-bankruptcy ABL facility claims will receive a share of the pre-bankruptcy ABL collateral and the proceeds from that collateral, as well as unencumbered sale proceeds to the extent of any diminution in the value of the claims.

Holders of equipment term loan claims will receive a share of collateral, subject to the satisfaction of an equipment term loan contribution.

Holders of real estate term loan claims will receive a share of collateral.

Holders of other secured claims will be paid in full in cash or receive an interest in the collateral securing the claim.

Holders of general unsecured claims will receive beneficial interests in the liquidating trust, entitling them to a distribution of net cash from trust assets.

Holders of interests in the parent company, intercompany claims, intercompany interests and section 510(b) claims will receive no distribution.

A hearing on conditional approval of the disclosure statement is scheduled for Sept. 10.

BJ Services is a Tomball, Tex.-based provider of hydraulic fracturing and cementing services to upstream oil and gas companies. The company filed bankruptcy on July 20 under Chapter 11 case number 20-33627.

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