Francis’ Drilling Fluids, Ltd.
Client Profile
Based in Lafayette, Louisiana, FDF is a leading provider of energy services, supporting drilling activities throughout the United States. They offer pneumatic transportation, drilling fluids and cleaning services to some of the largest oil and gas exploration and production companies in the country. FDF serves its customers from its facility network strategically located near major U.S. shale plays including the Permian, Haynesville and Eagle Ford basins, as well as the Gulf of Mexico. The Company has established itself as a market leader by offering a complementary portfolio of high quality products and services while providing a safe, balanced work environment for its employees.
Situation
FDF’s business was negatively affected by the sustained downturn in the oil and gas industry brought on by low commodity prices. This general market decline, coupled with lost revenue streams and increased driver and fleet maintenance costs, led to a decrease in profitability and the Company’s inability to service its debt. Despite these challenges, FDF remained profitable. To recapitalize the business and take advantage of near-term growth opportunities, the Company retained SSG as its exclusive investment banker to assist in the exploration of strategic alternatives.
Solution
After conducting an expedited pre-petition marketing process, the Company filed for Chapter 11 bankruptcy protection in the Southern District of Texas, Houston Division in September 2018 in order to effectuate the sale of the business. SSG subsequently conducted a comprehensive post-petition marketing process which produced multiple letters of intent from both strategic and financial buyers. Prophet’s stalking horse bid was ultimately determined to be the highest and best price for substantially all of the Company’s assets. SSG’s experience running and soliciting offers in an expedited Chapter 11 sale process enabled FDF to maximize the value of its assets while preserving the ongoing operation of its business.
