New Delaware Chapter 11 Filing – Chieftain Sand and Proppant, LLC
Chieftain Sand and Proppant, LLC, a producer of hydraulic fracturing sand, and one affiliate, have filed voluntary petitions for chapter 11 bankruptcy relief in the United States Bankruptcy Court for the District of Delaware (Lead Case No. 17-10064 KG) . According to the First Day Declaration, the demand in frac sand decreased drastically due to the recent petroleum recession and contributed to the commencement of these cases. The petition lists between $1 million and $10 million in assets and between $50 million and $100 million in liabilities. According to the First Day Declaration, the company enters chapter 11 with the goal to conduct a section 363 sale. Energy Capital Partners Mezzanine Opportunities, LP, one of its pre-petition secured lenders, will provide DIP financing and serve as the stalking horse. Donlin, Recano & Company, Inc. is the proposed claims agent. The cases have been assigned to the Honorable Kevin Gross.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.
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